Given the following, how much is total distribution costs?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Given the following, how much is total distribution costs?

  • Freight-in: ₱5,000
  • Freight-out: ₱6,000
  • Depreciation Expense – Store Equipment: ₱27,723
  • Depreciation Expense – Office Furniture and Fixtures: ₱19,554
  • Store Salaries and Wages Expense: ₱122,297
  • Store Utilities Expense: ₱38,173
  • Miscellaneous Administrative Expenses: ₱12,412
Expert Solution
Definition

Meaning of Total Distribution Costs

The costs that are incurred from place of production till the delivery of goods to the user. If a particular product is distributed through different stages for example from wholesale to retailer to consumer then the distribution costs incurred in all the stages are considered in computation of total distribution costs.

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