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Cost of inventories

  • Writer: Thomas Tsang
    Thomas Tsang
  • Jan 14, 2020
  • 1 min read

The cost of inventories shall include material, cost of conversion and freight inwards cost. Cost of conversion include depreciation, direct labour and other indirect cost.


Therefore, company shall do manufacturing cost accounting for inventories. They cannot don’t do manufacturing costing.

 
 
 

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