Landed Cost With Standard Cost Items
Two standard cost items are marked to use landed cost.
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Item 1: standard cost = 10 x Quantity = 1
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Item 2: standard cost = 12 x Quantity = 1
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On a receipt, for each the rate = 13 (total 26).
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Inventory Received Not Billed account = (-13 x 2)
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Item 1 Asset = 10
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Item 1 Variance = 3 (13 – 10)
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Item 2 Asset = 12
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Item 2 Variance = 1 (13 – 12)
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For landed cost:
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one item is used (6010 Advertising)
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entered $5 with allocation method = Quantity
The $5 is allocated evenly.
