Sold merchandise to a customer freight costs were 750 the


For each of the following events, determine the amount of freight paid by The Cake 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 $520. The merchandise was shipped FOB shipping point. 

b. Shipped merchandise to customers, freight terms FOB shipping point. The freight costs were $250. 

c. Purchased inventory with freight costs of $1,300. The goods were shipped FOB destination. 

d. Sold merchandise to a customer. Freight costs were $750. The goods were shipped FOB destination.

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Accounting Basics: Sold merchandise to a customer freight costs were 750 the
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