Question

which of the costs below would be included in the recorded cost of merchandise inventory? (check all that apply.) multiple select question. insurance costs selling costs wages costs invoice cost storage costs

Answer 1

The costs that would be included in the recorded cost of merchandise inventory are invoice cost, insurance costs, and wages costs.

Step-by-step explanation:

The costs that would be included in the recorded cost of merchandise inventory are invoice cost, insurance costs, and wages costs.

Invoice cost refers to the actual cost of purchasing the merchandise from the supplier, while insurance costs include any insurance premiums paid to protect the inventory. Wages costs include the salaries or wages paid to employees involved in handling the inventory.

Answer 2

The costs included in the recorded cost of merchandise inventory are insurance costs, invoice cost, and storage costs, as they are necessary for bringing the inventory to a saleable condition and location.

Step-by-step explanation:

The cost of merchandise inventory typically includes all costs necessary to purchase the inventory and get it ready for sale. This includes the invoice cost of the merchandise, and any additional costs necessary to bring the goods to a saleable condition and location. Specifically, among the options provided:

• Insurance costs: These are often included if they are directly related to the shipping or warehousing of the merchandise until it is sold.
• Wages costs: These are typically included only if they are direct labor costs associated with getting the merchandise ready for sale.
• Storage costs: Similar to insurance, these are included if they are necessary to store the goods until they are sold.
• Selling costs: These are not included in the cost of merchandise inventory as they are incurred at the point of sale or after.

Therefore, the costs included in the recorded cost of merchandise inventory from the options provided would be the insurance costs, storage costs, and the invoice cost.