Question

Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain elements:

Research and development	$53,000
Design	$17,000
Purchases	$99,000
Marketing	$42,000
Distribution	$68,000
Customer service	$27,000

What were the inventoriable costs at the Uniquely Me Shoppe?

Answer 1

Based on the information available, The total inventoriable costs for Uniquely Me Shoppe is the cost of the purchases . The total cost of purchases is $99,000.

Hence, the Inventoriable costs at the Uniquely Me Shoppe is $99,000.

Research and development and design costs are recorded as expense and hence not included as part of the inventory. Similarly, Distribution, Customer service and Marketing are period costs and cannot be included as part of the inventory.

Please let me know if you have any qeustions via comments and all the best :) !