Intermediate Accounting 7 Inventories 4. Determination of inventory costs Inventory Cost is all expenditures related to inventory acquisition preparation and placement for sale v Price paid or consideration given Freight-in R eceIving Y Unpacking √ Inspecting √ Storage v Insurance v Sales and other applicable taxes4. Determination of inventory costs Intermediate Accounting 7 Inventories ✓ Price paid or consideration given ✓ Freight-in ✓ Receiving ✓ Unpacking ✓ Inspecting ✓ Storage ✓ Insurance ✓ Sales and other applicable taxes Inventory Cost is all expenditures related to inventory acquisition, preparation, and placement for sale