The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Which of the following cost shall be included in the cost of inventories? a. Administrative overheads that do not contribute to bringing inventories to their present location and condition. b. Abnormal amounts of wasted materials, labor or other production costs. c. Storage costs unnecessary in its production process.
The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Which of the following cost shall be included in the cost of inventories? a. Administrative overheads that do not contribute to bringing inventories to their present location and condition. b. Abnormal amounts of wasted materials, labor or other production costs. c. Storage costs unnecessary in its production process.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Which of the following cost shall be included in the cost of inventories?
a. Administrative
b. Abnormal amounts of wasted materials, labor or other production costs.
c. Storage costs unnecessary in its production process.
d. Import duties and other taxes, transport, handling and other costs directly attributable to the acquisition of finished goods, materials and services.
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