Can "Freight out" be a part of Cost Of Goods Sold and not an expense?

[danielle-51]

I have seen conflicting information. If it is an expense, and not a part of "cost of goods sold", where is it included on form 1065. We are a multi-member LLC taxed as a partnership.

[Anonymous_ · Accepted solution]

Freight-in is typically included in the Cost of Goods Sold while freight-out is typically an expense (which can be included as Other deductions on Line 20).