09-30-2006, 08:28 PM
Cost should include all [IAS 2.10]
>costs of purchase (including taxes, transport, and handling) net of >trade discounts received
>costs of conversion (including fixed and variable manufacturing overheads) and
>other costs incurred in bringing the inventories to their present location and condition
Inventory cost should not include [IAS 2.16-2.18]
>abnormal waste
>storage costs
>administrative overheads unrelated to production
>selling costs
>foreign exchange differences arising directly on the recent >acquisition of inventories invoiced in a foreign currency
>interest cost when inventories are purchased with deferred settlement terms.
now.. if u know how to make that manufacturing account, u shud know that in the head of overheads, there are indirect wages....
now the question is whether the forman is production related or not.. if yes.. put it in the overhead...if not... u know wat to do!
plz tell if doesnt work.
xX-Xak-Xx
>costs of purchase (including taxes, transport, and handling) net of >trade discounts received
>costs of conversion (including fixed and variable manufacturing overheads) and
>other costs incurred in bringing the inventories to their present location and condition
Inventory cost should not include [IAS 2.16-2.18]
>abnormal waste
>storage costs
>administrative overheads unrelated to production
>selling costs
>foreign exchange differences arising directly on the recent >acquisition of inventories invoiced in a foreign currency
>interest cost when inventories are purchased with deferred settlement terms.
now.. if u know how to make that manufacturing account, u shud know that in the head of overheads, there are indirect wages....
now the question is whether the forman is production related or not.. if yes.. put it in the overhead...if not... u know wat to do!
plz tell if doesnt work.
xX-Xak-Xx
