Wholesale and distribution
Shipment freight allocation by product line
Allocate a shipment freight bill across product lines using a chosen common basis and reconcile cents.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
line freight = total freight × line allocation basis/sum(bases); landed unit cost = (goods cost + allocated freight)/line units
Choose one common basis such as actual line shipping weight, item count or value; enter each line total on that basis. Do not mix units or enter per-item weight as a line total. Zero-basis lines receive no freight. Allocation is a costing choice, not a customs or accounting ruling. Use your own records for the same scope and period. Example figures are illustrative, not industry benchmarks. Results exclude income taxes and any cost you have not entered. Check the result before pricing work or committing resources.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Shipment product lines: Enter matching rows from your records; add or remove rows as needed.
- Product line: Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Units received on this line (units): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Total purchase cost for line (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Total allocation basis for this line (matching basis units): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Total shipment freight bill to allocate (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Total landed shipment cost is $480.00 for the illustrative inputs below.
Example inputs
- Shipment product lines
- Product line: Product A
- Units received on this line: 10.00 units
- Total purchase cost for line: $100.00
- Total allocation basis for this line: 10.00 matching basis units
- Product line: Product B
- Units received on this line: 20.00 units
- Total purchase cost for line: $300.00
- Total allocation basis for this line: 30.00 matching basis units
- Total shipment freight bill to allocate: $80.00
- Total landed shipment cost
- $480.00
- Freight allocated across lines
- $80.00
- Product lines allocated
- 2 lines
- Allocation rounds the total freight bill to cents, distributing remaining cents by largest remainder.
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Allocate a shipment freight bill across product lines using a chosen common basis and reconcile cents. Inputs come from your own records and stated assumptions; no rates or legal limits are looked up.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.