I'm not an expert here, but this is my understanding: If the package is an important part of the product (ie think of a "Cheerios" box of cereal.) The packaging is part of the product, it'd be Direct Material. If you are amazon and ship products to customers, and you use Amazon envelopes to send them, the Amazon package is NOT a key part of the product and would be a "selling cost" and not part of the product. Sorry not to give a direct answer, but "it depends".
Excellent explanation👍
Hi, how do you determine the value of left over WIP at the end of the month?
Sir, is packaging cost part of manufacturing overhead?
I'm not an expert here, but this is my understanding: If the package is an important part of the product (ie think of a "Cheerios" box of cereal.) The packaging is part of the product, it'd be Direct Material. If you are amazon and ship products to customers, and you use Amazon envelopes to send them, the Amazon package is NOT a key part of the product and would be a "selling cost" and not part of the product. Sorry not to give a direct answer, but "it depends".
@@Tony-Bell Thank you so much, Sir
@@Tony-Bell Sir, what about delivery cost, is not part of MOH right?
@@noonagrandeur2363 Nope - it's a selling cost.
@@Tony-Bell okay, thank you Sir