Example: Landed Cost Actual Costing

This topic provides an example of landed cost actual costing. In this example, the quantity used is 200.

Part Number jw-lc

Costs Current
Material $4.00
Duty $0.50
Freight $0.25
Brokerage $0.10
Insurance $0.10
Local Freight $0.10
Totals $5.05

Vendor 2 jw-lc

Quantity 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 $4.80  
Vouchers Payable   $3.75
Duty Payable   $0.50
Freight Payable   $0.25
Brokerage Payable   $0.10
Insurance Payable   $0.10
Local Freight Payable   $0.10

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

(Additional Expense x Qty)

Debit Credit
Inv Adjustment $10.00  
Duty Payable   $10.00
Freight Payable $10.00  
Brokerage Payable   $10.00
Inv Adjustment Var $10.00  
Voucher Posting Debit Credit
Accounts Payable   $960.00 (4.80 x 200)
Brokerage Payable $20 (0.10 x 200)  
Duties Payable $100 (0.50 x 200)  
Freight Payable $50 (0.25 x 200)  
Insurance Payable $20 (0.10 x 200)  
Local Freight Payable $20 (0.10 x 200)  
Vouchers Payable $750 (3.75 x 200)