Example: Landed Cost Standard Costing
This topic provides a costing example.
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) |