Problem

Identifying freight costsRequiredFor each of the following events, determine the amount of...

Identifying freight costsRequired

For each of the following events, determine the amount of freight paid by The Dive Shop. Also indicate whether the freight cost would be classified as a product or period (selling and administrative) cost.

a.Purchased merchandise inventory with freight costs of $1,400. The merchandise was shipped FOB destination.


b. Shipped merchandise to customers, freight terms FOB destination. The freight costs were $300.


c. Purchased inventory with freight costs of $500. The goods were shipped FOB shipping point.


d. Sold merchandise to a customer. Freight costs were $800. The goods were shipped FOB shipping point.

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