Storage cost for raw material

CFA Level I
#1

Hi Can any one tell me wether I should include storage cost for raw material in inventory cost? many thanks

#2

i think storage costs of finished goods no

#3

Storage costs to the best of my knowledge are only included if they were incurred during the process of bringing goods to market i.e. production.Storage of finished goods is expensed through the IS

#4

C3Po is correct. Only costs included during the production are capped. Storage costs incurred after the good has been finished/finalized are expensed (period costs).

#5

Thank you every one.