Cost of reproduction method.

• Jurisdiction: United States
• Date: 01 April 1999
• Author: Heitritter, Wilfred H.

According to Rev. Proc. 77-12, the cost of reproduction method is appropriate for determining the value of inventory readily replaceable in a wholesale or retail business, but generally not useful for establishing the value of the finished goods of a manufacturing concern. Other factors are relevant when inventory is valued using this method. For example, the FMV of a well-balanced inventory available to fill customer orders may exceed its reproduction cost, because it provides a continuity...