Ringgold Winery is a large U.S.-based winery. In 2012 Ringgold spent $2.2 million to acquire grapes (including transportation costs of $200,000).
Ringgold incurred processing costs of $50,000 in materials (such as barrels, bottles, and corks), $145,000 in labor, $100,000 in machine costs, and $250,000 in utility charges. During the two- to three-year maturing period, Ringgold incurred additional costs for storage ($600,000), insurance ($120,000), indirect labor ($180,000), and property taxes ($28,000), a product cost. Ringgold also spent $400,000 on research and development and $200,000 on advertising during this period. Identify the costs Ringgold should include in its Wine Inventory account, independent of when Ringgold sells the wine.

  • CreatedMarch 04, 2014
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