IAS2

[Zikria Yamin]

Dear Seniors
According to IAS 2 Inventories, Whether the Foreman's wages are to be included into the cost of Inventories or not?

Please give your comments.

[Zikria Yamin]

Bhayoo!!!
Please provide the answer.

[Xak]

Cost should include all [IAS 2.10]

>costs of purchase (including taxes, transport, and handling) net of >trade discounts received
>costs of conversion (including fixed and variable manufacturing overheads) and
>other costs incurred in bringing the inventories to their present location and condition

Inventory cost should not include [IAS 2.16-2.18]

>abnormal waste
>storage costs
>administrative overheads unrelated to production
>selling costs
>foreign exchange differences arising directly on the recent >acquisition of inventories invoiced in a foreign currency
>interest cost when inventories are purchased with deferred settlement terms.

now.. if u know how to make that manufacturing account, u shud know that in the head of overheads, there are indirect wages....
now the question is whether the forman is production related or not.. if yes.. put it in the overhead...if not... u know wat to do!

plz tell if doesnt work.

xX-Xak-Xx

[usmankhalid]

I THINK UR A STUDENT OF PROFESSIONALS` ACADEMY OF COMMERCE, AND JAFFAR HUSSAIN HAS TAUGHT U, THATS WHY U CANT UNDERSTAND SUCH SIMPLE THINGS.

[Zikria Yamin]

You are Right.
I am student of PAC.

[nabeelanwer]

Usman i think Jaffar Hussain sb had told everything to best of his knowledge, its upto students how they comprehend!

[Zikria Yamin]

I think there is some problem with people, who always try to prove that PAC is of Inferior Quality.

But, being a student of PAC, I found it the Best.

And Second thing is, Jaffar Sahib are not caching for 1.1