The following items are added to the cost of inventory:
1.Purchase price of goods
2.Direct labor costs incurred to bring the goods to their present location and condition
3.Direct overhead costs, such as rent, utilities, insurance, and depreciation of plant and equipment used in the production process
4.Freight-in or transportation costs incurred to acquire the goods
5.Import duties, taxes, and other non-refundable charges directly attributable to the purchase of the goods
6.Any other costs incurred to bring the goods to their present location and condition, such as inspection, testing, handling, and storage costs
