Question

In stock valuation, which of the following groups of stocks are valuated?There are 3 correct answers to this question.

1) Raw materials, supplies, and consumables
2) Work in process
3) Goods invoiced
4) Finished goods

Answer 1

In stock valuation, raw materials, work in process, and finished goods are the groups of stocks that are valuated.

Step-by-step explanation:

In stock valuation, the following groups of stocks are valuated:

1. Raw materials, supplies, and consumables: These are the materials that a company uses to produce its goods. Examples include raw materials like timber for furniture manufacturing, or supplies like office stationary.
2. Work in process: This refers to goods that are in the process of being manufactured or assembled but are not yet completed. For example, a car that is partially assembled on an assembly line.
3. Finished goods: These are goods that have been completed and are ready to be sold to customers. Examples include fully assembled cars or packaged food products.