Freight expenses for Raw Material

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When accounting for freight expenses on raw materials, you have a choice: either add the cost directly to the raw material's value or record it separately. While both methods are permissible, it's common practice to include these costs under the raw material category. Alternatively, foreign freight expenses can be classified as direct expenses within your Trading Account.

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(Querist)
18 October 2023 Freight expenses incurred to bring raw material, whether it should be added cost of raw material or should be shown separately.
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RAJA P M

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RAJA P M (Expert)
18 October 2023 Both way you can follow. But, generally it will account under the Raw Material category...
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Aashok Kumar Sharmapro badge (Expert)
15 January 2024 Foreign expenses can also be shown as DIRECT Expenses in Trading Account
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