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)