A company incurs the following costs related to its inventory during the year:
| Cost | ￥Millions |
| Purchase price | 100,000 |
| Trade discounts | 5,000 |
| Import duties | 20,000 |
| Shipping of raw materials to manufacturing facility | 10,000 |
| Manufacturing conversion costs | 50,000 |
| Abnormal costs as a result of waste material | 8,000 |
| Storage cost prior to shipping to customers | 2,000 |
The amount charged to inventory cost (in millions) is closestto:
The costs to include in inventories are all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition. It does not include abnormal waste costs or storaqe of finished product.
| Cost | ￥Millions |
| Purchase price | 100,000 |
| Minus trade discounts | -5,000 |
| Import duties | 20,000 |
| Shipping of raw materials to manufacturing facility | 10,000 |
| Manufacturing conversion costs | 50,000 |
| Total inventory costs | 175,000 |