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hi sir ,
i have one question that confuse me about the valuation of cost of manufacturing goods and cost of finished good?cost of manufacturing good include: raw materials, production and work in progress
direct labor, direct material , depreciation factory equipment , labor wages, factory rent, storage of good before production , factory management cost, carriage inward
how about the cost of finished good include?
to my extent it includes insurance, carriage outward, sales man commission ?The cost of finished goods is the same as the cost of manufacturing of those goods that are finished (i.e. not including work-in-progress).
It may include insurance, if it is insurance within the factory (and the cost of manufacturing will ask well).
It will certainly not includes carriage outwards or salesman commission – these are selling costs.
Have you watched my free lectures on this? The lectures are a complete free course and cover everything needed to be able to pass the exam well.
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