Warehousing cost -as 2

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Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2011 can warehousing cost charged to inventory?

for working capital Occ Account is operated and interest is charged on it. can interest amt be part of valuation of inventory?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 December 2011 Warehousing costs are not charged to inventory.
.
If the inventory stored is used for the further process of production, storage costs may be charged to inventory.
.
In valuation of inventory , interest and other borrowing costs are not considered.
Such costs are not treated in relation to bringing the inventory to its present location and as such these will not form
part of the cost of the inventory.

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2011 when inventory is imported which cost can be included in valuation?

eg.purchase invoice
fright
transportation till it reach to warehouse
charges charged by clearing & forwarding agent

which other cost?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 December 2011 All these plus any other cost which is incurred for bringing the inventory to its current location.

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