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Answer Posted / arvind desai
Inventories are valued at the actual cost Computed on
weighted average cost or FIFO basis and estimated net
realizable value. Cost of work-in-process and finished
goods includes manufacturing overheads. The Company
accrues for excise duty liability in respect of
manufactured finished goods inventories lying in the
factory and customs duty liability in respect of
inventories in bond. Net realizable value is
the estimated selling price in the ordinary course of
business, less estimted cost of completion and estimated
cost necessary to make the sale.
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