How to calculate the Landed Price of imported goods from China, multiple products with differnt purchase prices ant stock amounts:
So the total Landed Price of my shipment is £157444.48 and we have 75 blue widgets at £604 & 75 of Red widgets at the same price. We also have 15 yellow widgets at £729.00 as well as 15 Green widgets. Im struggling to split the Total landed price between the four products. Please help?
You need to apply relevant rules of management accounting to your calculations. Shipping costs can very per widget (weight/volume) as can duty (tariffs ); shipment methods (CIF etc); discounts and lots of other things. You are looking too simplistically. Plus not supplying anywhere near enough information. Dont know what your role is in the business, but perhaps you should have a word with your supervisor or at the very least the external accountant.
-- Edited by Zoorbing on Wednesday 22nd of September 2021 06:11:44 PM
Hello Zoorbing, sorry for the vagueness but I thin I have worked it out. I think you get a proforma invoice from china for the goods whatever they are, they total goods were £119181.89
Freight, Duty & VAT were £38262.59
So total cost was £157,444.48
However I have two different products on order one has a Purchase price of £604.00 and the other £729.00
In order for us to find the correct "Landed Price" for both products we simply total up the none product costs which are £38262.59 and divide this against the original total of the proforma £119181.89 and we get our Daily Duty rate.
So £38262.59 / £119181.89 = £0.32
therefore the new Landed Price for both products are now £797.91 and £963.04
Only if they attract the same duty and you ignore all the other factors/my comments. Duty is not a daily rate. vat is not a cost. Havent checked your calculations, CBA.
-- Edited by Zoorbing on Thursday 23rd of September 2021 03:19:49 PM
