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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › inventroty
6.2 Which of the following costs may be included when arriving at the cost of finished goods inventory for
inclusion in the financial statements of a manufacturing company?
1 Carriage inwards
2 Carriage outwards
3 Depreciation of factory plant
4 Finished goods storage costs
5 Factory supervisors’ wages
A 1 and 5 only
B 2, 4 and 5 only
C 1, 3 and 5 only
D 1, 2, 3 and 4 only
answer is c. why not include finished goods storage cost?
Because they are not a cost of production. The cost of finished goods is the total cost of producing them – not storing them after they have been produced.