Effect of landed cost on COGS

[shahid amin]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by tango_acc</i>
<br />hi,
landed cost (inbound freight) is part of cogs.
i know that product cost is built of direct material, direct labour and manufacturing overhead.
so may i know how landed cost affect cogs?

thanks
rgds

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
<font color="red"><b>landed cost</b></font id="red">
<b>Definition</b>
Commonly, the total cost of a landed shipment including purchase price, freight, insurance, and other costs up to the port of destination. In some instances, it may also include the customs duties and other taxes levied on the shipment.

<font color="red"><b>Treatment of landed cost in cost of goods sold statement</b></font id="red">

usually landed cost is the part of cost of purchase, we added landed cost in cost of purchase and calculate net purchases.