Entity A purchases motorcycles from Italy, Germany and Japan. It sells to domestic and foreign customers. Entity A incurred the following expenses during 2010: 

Entity A seeks your advice on which costs are permitted under IAS 2 to be included in the cost of inventory.

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(a) cost of purchases (based on vendors' invoices); (b) trade discounts on purchases; (c) import duties; (d) freight insurance on purchases; (e) other handling costs relating to imports; (f) salaries of accounting department; (g) brokerage commission payable to indenting agents for arranging imports; (h) sales commission payable to sales agents; (i) after-sales warranty costs.