USA Cost of goods sold query

[Mark Newton]

Are Freight and Shipping charges a COGS?

I'm a furniture maker. Custom stand alone items for private clients. Once made, if I have to ship it to a client, is the cost of that freight a COGS?

 

[smallbushelp]

No. Since it's not a cost you incurred to manufacture the piece of furniture, it's not COGS. Freight/shipping costs are just a normal part of doing business.