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In like manner, a finished goods inventory will also have an inventoriable cost. This will include not only all the costs related to the raw materials, but also the direct labor and any fixed or variable overhead that is incurred while producing those finished goods. If those goods are stored at a rented facility, even the cost of the rental will be accounted for as an inventoriable cost.
Product costsare the direct and indirect costs of producing goods or services. For the pro-duction of a Bombardier Learjet, direct costs include materials such as metal, wiring, and cabinetry as well as labor directly involved in the production of an individual jet. In addi-