Identifying freight costs
Required
For each of the following events, determine the amount of freight paid by The Book Shop. Also indicate whether the freight cost would be classified as a product or period (selling and administrative) cost.
a. Purchased merchandise with freight costs of $700. The merchandise was shipped FOB shipping point.
b. Shipped merchandise to customers, freight terms FOB shipping point. The freight costs were $100.
c. Purchased inventory with freight costs of $1,000. The goods were shipped FOB destination.
d. Sold merchandise to a customer. Freight costs were $900. The goods were shipped FOB destination.