Protea Weekly Week 12

Protea Weekly Podcast – Episode 12 – Let’s Talk About Wine!

In this episode, we discusses the importance of inventory costing in the wine industry. He emphasizes the need for accrual basis accounting and explains how tracking costs on an accrual basis provides a basis for making good business decisions. Zane focuses on the complexities of inventory costing in the wine industry, where the process from raw material to finished product can take several years. He highlights the importance of accurately allocating costs for grapes, packaging materials, and overheads. Zane also discusses the challenges of inventory costing in manufacturing and the value of having an industry expert to help with costing. He concludes by emphasizing the importance of accurate costing information for making informed business decisions.



– Accrual basis accounting is crucial for tracking costs and making informed business decisions.

– Inventory costing in the wine industry is complex due to the extended production process and the need to allocate costs for grapes, packaging materials, and overheads.

– Manufacturing businesses should seek the expertise of industry professionals to ensure accurate inventory costing.

– Accurate costing information is essential for setting prices, making marketing plans, and evaluating business performance.



00:00 Introduction and Reflection

00:58 Importance of Accrual Basis Accounting

03:41 Complexity of Inventory in Manufacturing

09:00 Monthly Management of Inventory Costing

12:14 Considerations for Packaging Costs

15:06 Additional Costing Scenarios

16:06 Importance of Manufacturing Expertise

18:14 Conclusion and Next Steps