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Other costs, such as transportation and even storage of the inventory, are also considered to be inventoriable. For a manufacturing operation, determining the cost of inventory on hand will begin with the actual unit cost of every item that is maintained within an inventory.
In the case of any property to which this section applies, any costs described in paragraph (2)â. (A) in the case of property which is inventory in the hands of the taxpayer, shall be included in inventory costs, and. (B) in the case of any other property, shall be capitalized.