Hi, I have a question regarding shipping charges. I'm reconciling the company's monthly bank statement and I'm trying to allocate shipping charges.

When are shipping/freight charges considered EXPENSE and/or COGS?

I work for a print shop, we print on apparel., we supply the apparel and print on them.

We purchase the apparel from our suppliers regularly, we do not keep inventory. we order what is needed for the order. 

Example: customer order 50 shirts from us and then we print their design on them. 

Our distributor charges us shipping on the shirts shipped to us - are these COGS or Expense?

Sometimes we ship the order to the customer via UPS and we invoice the customer for the shipping and delivery. But we pay for the label as well? Since we pay for shipping too is this consider EXPENSE OR COGS?

I understand that everything related to shipping supplies, boxes,tape,polybag,stamps, etc.. are consider shipping EXPENSES.,correct?

thank you for your help in advance.