The cost of storage of the items you add in the cost of Good soled or in selling expenses and why?

Question

Ashraf CMA CIA · Answer

Cost of storage of inventory is Meryl G&A Exp ( rent ), and it will neither be included into the CGS nor selling expenses.

Mukkaram Siddique · Answer

Inventory Storage cost or Finished goods.

Both are treated as Selling Expense, because CGS (Cost of Goods Sold) contains value of inventory and Purchase cost of new inventory

CGS=

Op. Stock

+Purchases

-Closing Stock