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Cost of closing inventories

This topic has 2 replies, 2 voices, and was last updated 3 weeks ago by ThaeJulyOo257.

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July 9, 2022 at 2:02 am #660192
ThaeJulyOo257
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A manufacturing business calculated the cost of its closing inventory as follows:
DM cost 200000
DL cost 180000
Share of storage cost for finished goods 20000
Share of factory O/H 60000
Share of selling costs 85000
545000

What figure should be used as the cost of closing inventories?
July 9, 2022 at 10:13 am #660205
John Moffat
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It is valued at all costs getting the goods ready for sale (which does not include costs associated with selling).

This is all explained in my free lectures.
July 12, 2022 at 4:20 pm #660344
ThaeJulyOo257
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- Replies: 6
So the answer is $440000?
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