Whenever you pay for shipping out to your customer, this is not included in COGS but is a monthly expense. This expense of shipping to the customer is directly related to the sale of the product, so we include it in the Cost of Sales section and include it in the gross profit calculation.

Should freight be in COGS?

Freight is clearly a direct cost that's associated with a product sale, so it has to be in the cost of goods sold.

Is freight out a selling expense or COGS?

Freight cost incurred by the seller is called freight-out, and is reported as a selling expense which is subtracted from gross profit in calculating net income.