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 ?
Ask the Tutor ACCA FA
inventory
6y ago#1The 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.
Sign into reply to this topic.