A primary issue in accounting for inventories is the determination of the value at which inventories are carried in the financial statements.

The financial statements should disclose

Company name --Chennai Petroleum Corporation Ltd

(a) the accounting policies adopted in measuring inventories, including the cost formula used; and

(b) the total carrying amount of inventories and its classification appropriate to the enterprise

Kindly explain in detail full solution i need full explaination.

Comment on the method used for valuation of Inventory and why.