Required For each of the following events, determine the amount of freight paid by Toms Part House Also indicate whether the freight cost would be classified as a product or period (selling and administrative) cost (Select NA if there is no effect on the Classification ) a Purchased inventory with freight costs of $500 The goods were shipped FOB shipping point b Sold merchandise to a customer Freight costs were $800 The goods were shipped FOB shipping point c Purchased merchandise inventory with freight costs of $1,400 The merchandise was shipped FOB destination d Shipped merchandise to customers, freight terms FOB destination The freight costs were $300 Event Freight Costs Paid Classification a b d

Question

Required For each of the following events, determine the amount of freight paid by Toms Part House  Also indicate whether the freight cost would be classified as a product or period (selling and administrative) cost  (Select  NA  if there is no effect on the  Classification  ) a  Purchased inventory with freight costs of $500  The goods were shipped FOB shipping point  b  Sold merchandise to a customer  Freight costs were $800  The goods were shipped FOB shipping point  c  Purchased merchandise inventory with freight costs of $1,400  The merchandise was shipped FOB destination  d  Shipped merchandise to customers, freight terms FOB destination  The freight costs were $300  Event Freight Costs Paid Classification a  b  d

Accepted Answer

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a.	Purchased inventory with freight costs of $500. The goods were shipped FOB shipping point.
b.	Sold merchandise to a customer. Freight costs were $800. The goods were shipped FOB shipping point.
c.	Purchased merchandise inventory with freight costs of $1,400. The merchandise was shipped FOB destination.
d.	Shipped merchandise to customers, freight terms FOB destination. The freight costs were $300.

Question

Required For each of the following events, determine the amount of freight paid by Toms Part House. Also indicate whether the freight cost would be

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