Effect of landed cost on COGS

tango_acc · 08-08-2009, 05:06 PM

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

faisal_desperado · 08-10-2009, 07:59 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by tango_acc
 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"></blockquote id="quote">

It will be treated as manufacturing cost, accordingly, will effect COGS ultimately.

Regards,

shahid amin · 09-03-2009, 04:45 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by tango_acc
 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"></blockquote id="quote">
landed cost
Definition
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.

Treatment of landed cost in cost of goods sold statement

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

awaisaftab · 09-03-2009, 05:25 PM

It will be included in material cost just as freight in is added in the cost of material in CGS.

shahid amin · 09-09-2009, 04:56 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by awaisaftab
 It will be included in material cost just as freight in is added in the cost of material in CGS.

<hr height="1" noshade id="quote"></blockquote id="quote">

Ok sir