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Zee Ltd. purchased raw material of 20,000 units at 10 per kilogram during the year 2016-17. They provide you with the following other information for
Zee Ltd. purchased raw material of 20,000 units at 10 per kilogram during the year 2016-17. They provide you with the following other information for the year ended 31st March, 2017: Particulars Units Opening inventory: Finished goods 2,000 50,000 Raw materials 2,200 22,000 Labour 1,53,000 Fixed overhead 1,50,000 Sales 20,000 5,60,000 Closing inventory: Finished goods 2,400 Raw materials 1,800 The expected production of the finished product for the year was 30,000 units. Due to a fall in the market demand, the price of the finished goods in which the raw material is incorporated is, expected to be sold at *20 per unit. The replacement cost of raw material was 9.50 per unit on the closing day of the accounting period. You are required to value the closing inventory as on 31st March, 2017 with reference to Ind AS 2
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