Classic autos specializes in selling gently used specialty sports cars and uses the specific identification method of determining ending inventory and cost of goods sold. item 507k was sold for $90,000. classic purchased the sports car for $50,000 and paid $1,800 for freight in and $1,000 for freight out. what is the cost of goods sold?

The Cost of Goods sold is $52,800.

Cost of goods sold refers to the all the costs that are directly associated with the production of a product. This includes cost of raw materials, direct labour and any other costs that are directly attributable to the production of a product.

Freight -in refers to transportation cost incurred at the time of the delivery of goods from a supplier.

Freight out refers to the cost of transporting goods from a supplier to a customer, and are borne by the supplier.

Both freight-in and freight-out are included in the Cost of Goods Sold of a business organization.