Measurement of Inventories

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.... Conversion * Other costs incurred to bring the inventory to present location and condition. Cost of Purchase Cost of purchase includes all the costs incurred to purchase the material. The following items are directly related to the purchase of material: ₹ Purchase Price i.e., Basic Price of Material XXX Add: Non-Refundable taxes & duties like customs duty XXX Carrying Cost e.g., ....

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....uch as depreciation and maintenance of factory buildings, equipment and right-of-use assets used in the production process, and the cost of factory management and administration. * Variable production overheads are those indirect costs of production that vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labour. Other Costs Other costs are....