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Can someone prepare a mock test on AS 2: Valuation of Inventories?

AS2 : Valuation of inventories ke mock test taiyaar karke do n

Asked by Nikita··3 answers

3 replies

  1. BrunoAI answerAI first answer — verify with your teacher

    Sure! Here's a quick 4-question AS 2 mock (answers at the end): 1. Is abnormal material wastage included in the cost of inventory? 2. Raw material cost is Rs 100 and NRV is Rs 90. The finished goods using it will sell above cost. At what value is the RM shown? 3. Which cost formula does AS 2 not allow: FIFO, Weighted Average or LIFO? 4. Are selling and distribution costs part of inventory cost? Answers: 1. No 2. Rs 100 3. LIFO 4. No For full papers, open note [4] (MTP compilation) below, or search "AS 2" in the Notes tab.

  2. Ramkishan

    To fir kar logi Lage raho

  3. Sumit

    Mock test paper are available at icai website

Related questions

Is LIFO allowed under AS 2?

No. AS 2 allows the FIFO and weighted average cost formulas, and specific identification for items that are not ordinarily interchangeable. LIFO is not permitted.

Are storage costs included in inventory cost under AS 2?

Storage costs are generally excluded. They are included only when storage is necessary in the production process before a further production stage.

When can raw material be valued below cost?

Only when a fall in material prices shows that the cost of the finished products will exceed their net realisable value. In that case, replacement cost may be the best available measure of NRV.

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