Question

The unsold stock on consignment is valued at ________________.

• A. Original cost of the goods
• B. Original cost plus non-reacurring (direct) expenses incurred by both consigner and consignee
• C. Original cost plus non-recurring (direct) expenses incurred only by the consignor
• D. Original cost plus all expenses

Answer 1

The correct option is B Original cost plus non-reacurring (direct) expenses incurred by both consigner and consignee

The cost of unsold stock or closing stock should be valued at cost to the consignor plus proportionate non-recurring expenses incurred by the consignor and consignee.