This topic provides an example of landed cost standard costing. In this 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) |
|