Example: Landed Cost Actual Costing
This topic provides an example for landed cost actual costing.
In the following 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) |