Wednesday, February 20, 2013

Kings Mountain Distillery

1.Businessdictionary.com defines parentage exist as the cost of holding goods in stock. Expressed usually as a percentage of the stocktaking value, it includes capital, warehousing, depreciation, insurance, taxation, obsolescence, and shrinkage costs. In accordance with this definition the following draw the cost that we associate with inventory:

Warehousing is defined as performance of administrative and physical functions associated with storage of goods and materials. These functions include receipt, identification, inspection, verification, displace away, retrieval for issue, etc. KMD Leased additional warehouse aloofness to store increased inventory. Therefore, the research suggests that the additional warehousing cost should be included in the inventory cost.
Warehousingat $ 280,000.00 per year

In addition, KMD uses specialized barrels that are essential to the aging process of its inventory. These barrels are only used once per aging period, therefore, it is our credit that cost of each barrel should be included in inventory costs.

Fire-charred Barrel $ 89.00 per barrel
Taxation is place as the means by which governments finance their expenditure by imposing charges on citizens and corporate entities. The re-gauging operation of KMD is required to be supervised by a government liquor tax agent.

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A levy is assessed to the product as it is moved from the warehouse. Therefore, it is our opinion that the taxation amount should be included in inventory costs.
Excise Tax $ 29.50 per gallon
Shrinkage is the difference between book-inventory and physical-inventory delinquent to counting or recording errors, or resulting from pilferage, spoilage, theft, or wastage. On the average, the volume of liquid in a barrel declines more or less 30% during the aging process because of evaporation or leakage. Therefore, goop can be viewed as a regular going away of inventory and included in inventory cost.
Seepage $ 1.50 per gallon

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