COSTS INCLUDED IN INVENTORIES: EXAMPLE Assume that during a year, a table manufacturing company produced 900,000 finished tables incurring produw material costs of 9 million, direct labour conversion costs of 18 million, and scrapped 1,000 tables costs of 1.8 million. raw material costs of 10,000 and labor and overhead conversion costs of 20,000. spent 500,000 for storing the finished goods as inventory. The company does not have any work-in-progress inventory at year end. -What costs should be expensed in the period incurred? What costs should be included in inventory and expensed when the goods are sold