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Work-in-progress is generally valued at

AMarket price

BCost price

CSelling price

DCost price or market price which ever is less

Answer:

D. Cost price or market price which ever is less

Read Explanation:

Work-in-progress (WIP) refers to partially completed goods in a manufacturing process. Accounting principle for valuation of WIP: Conservative / Lower of Cost or Market (Net Realizable Value). Cost price: Expenses incurred so far in producing the goods. Market price / Net realizable value: Estimated selling price minus completion and selling costs. This ensures that assets are not overstated in the financial statements. Other options: Market price: Could overstate WIP. Cost price: Ignores possible fall in realizable value. Selling price: Not used for valuation in accounts.

Related Questions:

Securing possession of records of a co-operative society is in section ---- of KCS Act
Management audit is conducted by:

Consider the statements related to KRIBHCO and IFFCO.

  1. Both are multi-state Co-operative societies.
  2. Major products of both the societies are fertilisers
  3. Both have Co-operative societies as its members.
  4. Both have production plants at Gujarat and Uttar Pradesh
    The accounts of every society shall be audited within of the close of the financial year to which such accounts relate
    -- is the headquarters of N.C.U.I