Question: Identifying freight cost Required For each of the following events

Identifying freight cost

Required
For each of the following events, determine the amount of freight paid by Tom’s Parts House. Also indicate whether the freight is classified as a product or period cost.
a. Purchased inventory with freight costs of $1,400, FOB destination.
b. Shipped merchandise to customers with freight costs of $300, FOB destination.
c. Purchased additional merchandise with costs of $500, FOB shipping point.
d. Sold merchandise to a customer. Freight costs were $800, FOB shipping point.


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  • CreatedOctober 26, 2013
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