Inventory Records - cost per unit calculation

yan18

Hi,

When calculating the cost per unit, does this figure include the cost of postage spread out across each item?

For example:

I order a pack of 100 pens for 18p each. Delivery for this order is £2.99.

For calculating the unit cost for inventory records, is the unit cost 18p or 21p?

Thanks for your help!

yan18

Spamkebab

Hi

For valuation purposes inventory costs include any costs incurred bringing inventories to their present location as per IAS2 Inventories.

Are the pens stock that you will sell on or an expense for the office? If it is stock/inventory then refer to IAS2.