Question

example to find the value of closing stock in consignment
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Answer 1

Proportionate direct expenses i.e. the expenses incurred by the Consignor and Consignee till the goods reached the godown of the Consignee. Expenses incurred by the Consignee after the goods have been brought to the shop/godown are not considered.

Answer 2

Explanation:

Valuation of stock on consignment:

Note: The storage charges of $350 and fire insurance premium of $270 paid by consignee have not been taken into account while determining the value of stock on consignment because these two expenses have been incurred after the goods have reached to the consignee's place or warehouse.