Can someone provide a discussion response for the information below? Thanks in advance!
Professor
Transportation-in or freight-in costs are part of the cost of goods purchase.The cost of goods (or any asset) includes all costs necessary to get an asset in place and ready for use. Freight-in is associated with transportation of the items purchased. This is why freight-in was added to the net purchases while Transportation-out or freight-out costs are not product costs and are not inventoriable. Transportation-out costs are costs of selling the products and will appear as a selling expense (perhaps as Delivery Expense) in the period in which they occur.