Question
Allocation of freight: An invoice for materials A, B, and C is received from the Lawson Company. The invoice totals are A: $ 15,000, B=
Allocation of freight:
An invoice for materials A, B, and C is received from the Lawson Company. The invoice totals are A: $ 15,000, B= $ 8,000 and C= $ 22,000. The freight charge on this shipment weighing 9,000 kilograms is $990. Shipping weights for the respective materials are 2,900, 2,400, and 3,700 kilograms.
Required:
1) The cost per kilogram to be entered on the materials ledger cards for A, B, and C if each dollar for invoice cost is assigned an equal portion of the freight charge. (Round off unit costs to three decimal places)
2) The cost per kilogram to be entered on the materials ledger cards for each material if the freight cost is assigned on a basis of the shipping weight for each material.
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