Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 9 - Inventories: Additional Valuation Issues - Concepts for Analysis - Page 539: CA9-5a(1)

Answer

Olson Corp inventoriable cost should include all costs incurred to get the lighting fixtures ready for sale to the customer.

Work Step by Step

It should not only include the purchase price of the fixtures but also the other associated costs incurred on the fixtures up to the time they are ready for sale to the customer, for instance, freight-in.
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