All of the following are included in the computation of cost of goods sold except
A)freight-out
B)purchase returns and allowances
C)beginning finished goods inventory
D)freight-in

Question

Quizplus · Accepted Answer

Freight-out costs are considered selling expenses and are not included in the computation of cost of goods sold. Cost of goods sold typically includes costs directly related to the production or purchase of the goods sold, such as beginning inventory, purchases (net of returns and allowances), freight-in, and labor costs, but not the costs associated with distributing or selling the product.

All of the Following Are Included in the Computation of Cost