Example: Landed Cost Standard Costing
In the following example, the quantity used is 200.
Part Number jw-lc
| Costs |
Standard |
Current |
| Material |
$4.00 |
$4.00 |
| Duty |
$0.50 |
$0.50 |
| Freight |
$0.25 |
$0.25 |
| Brokerage |
$0.10 |
$0.10 |
| Insurance |
$0.10 |
$0.10 |
| Local Freight |
$0.10 |
$0.10 |
| Totals |
$5.05 |
$5.05 |
Vendor 2 jw-lc
| Qty Break |
Material Cost |
| 100.00 |
$4.00 |
| 200.00 |
$3.75 |
| 300.00 |
$3.50 |
| 400.00 |
$3.25 |
| 500.00 |
$3.00 |
| Receiving |
Debit |
Credit |
| Inventory |
$5.05 |
|
| Vouchers Payable |
|
$3.75 |
| Duty Payable |
|
$0.50 |
| Freight Payable |
|
$0.25 |
| Brokerage |
|
$0.10 |
|
| Insurance Payable |
|
$0.10 |
|
| Local Freight Payable |
|
$0.10 |
| Purchase Price Variance |
|
$0.25 |
| |
|
|
Create Voucher from PO:
| Voucher Distribution Totals |
|
|
| Duty |
$0.55 |
Expense is $0.05 more than receiving |
| Freight |
$0.20 |
Expense is $0.05 less than receiving |
| Brokerage |
$0.15 |
Expense is $0.05 more than receiving |
| Voucher Distribution |
Debit |
Credit |
| Duty Variance |
$10.00 |
|
| Duty Payable |
|
$10.00 |
| Freight Variance |
|
$10.00 |
| Freight Payable |
$10.00 |
|
| Brokerage Variance |
$10.00 |
|
| Brokerage Payable |
|
$10.00 |
Voucher Posting
(Additional Expense x Qty) |
Debit |
Credit |
| Accounts Payable |
|
$970 (4.85 x 200) |
| Brokerage Payable |
$30 (0.15 x 200) |
|
| Duties Payable |
$110 (0.55 x 200) |
|
| Freight Payable |
$40 (0.20 x 200) |
|
| Insurance Payable |
$20 (0.10 x 200) |
|
| Local Freight Payable |
$20 (0.10 x 200) |
|
| Vouchers Payable |
$750 (3.75 x 200) |
|
Related Topics
Transfer Order Landed Costs