USA How to treat overhead when we build parts for stock

[leonid]

Hello
We produce commercial microwave ovens. Normally I apply to the cost: direct labor, direct materials and Standard Overhead
Sometimes people build parts (like generators) which will be used on our future jobs. For this situations I collect all related expenses (direct labor and direct materials)
and at the end of the month I move generators which have been built to the stock account as new parts.
My question is: do I have to include Overhead in the cost of new generators ?
Thank you very much for your help

 

[Triest123]

Hello
We produce commercial microwave ovens. Normally I apply to the cost: direct labor, direct materials and Standard Overhead
Sometimes people build parts (like generators) which will be used on our future jobs. For this situations I collect all related expenses (direct labor and direct materials)
and at the end of the month I move generators which have been built to the stock account as new parts.
My question is: do I have to include Overhead in the cost of new generators ?
Thank you very much for your help

=> The generators are the parts of your finished goods or the equipment for producing
the finished goods ?

 

[victoredwards]

On financial statements, each product must include the costs of the following:
1. Direct material
2. Direct labor
3. Manufacturing (or factory) overhead
the costs and expenses relating to a company's administrative, financing and selling, and financing functions are not considered to be part of manufacturing overhead, they are not reported as part of the final product cost on financial statements.