how do you calculate the percentage of freight on a shipment?
Step 1. Determine the shipping cost for a specified period of time. For example, assume that a company spent $30,000 in shipping during the year. Step 2. Determine the average inventory for the same period of time.If you do not know the average inventory figure, you can add the beginning inventory to the ending inventory figure and divide this sum by 2.For example, assume the beginning inventory was $1million and the ending inventory was $1,500,000. ($1,000,000 + $1,500,000) / 2 = $1,250,000.tep 1. Determine the shipping cost for a specified period of time. For example, assume that a company spent $30,000 in shipping during the year. Step 2. Determine the average inventory for the same period of time.