GasGiant
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We expense freight instead of burdening inventory. I don't know GAAP, but it must be acceptable because we've been audited and we are still doing it. So, since we don't add freight back into the PO, price is cost.
you buy 100 at $1.00, then you use 80 before the next 100 come in at $1.10, which makes your Last Cost $1.10 and your Avg Cost $1.0833 (20@$1, plus 100@$1.10 = $130 / 120 on hand.)
Standard does not change unless you do something to change it, either by changing it directly (e.g. in IN-B Std Cost) or running IN-L-E
A job shop would make sure that the cost of freight was included in the PO cost so that it is passed on to the customer.
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COSTS?? (Read 398 times)
