Calculate value of closing stock from the following information Cost of Production for 10 000 units ...........

Costing - Phase (I & II) Overview of Cost and Management Accounting

Calculate value of closing stock from the following information:

Cost of Production for 10,000 units is Rs. 50,000/-

Value of Opening stock of finished goods for 500 units is Rs. 2000/-

Value of Closing stock of finished goods for 1000 units will be:

Rs. 4000/-

Rs. 4500/-

Rs. 5000/-

Rs. 6000/-

Value of Closing Stock of Finished Goods= (Cost of Production (Rs.) / Units Produced) x Units of Closing Stock of Finished Good

In given problem, value of closing stock of finished goods = (50,000/ 10,000) x 1000 = 5,000/-

Submit Error

why we don't considered opening stock here ?

Ankur sharma

Opening stock is not required, as cost of production is given, hence closing stock will be valued as per cost of production