Brian, the manager at Bridgeport's Danishes, was excited to determine the company's profit this year. It was a break-out year for the company, especially after being selected to cater the World College Club Sports Athletes' Annual Meeting. The company was thrilled! The number and variety of danishes produced for that event alone doubled the company's sales for the year. Brian knew the total sales amount but had yet to determine the total COGS. He hoped that it would be low relative to sales. Here are the transactions and amounts Brian found when gathering information for his COGS calculation. Transaction Description Amount Advertising $12,000 Flour, eggs, sugar 318,000 Depreciation on baking equipment and kitchen 44,000 Delivery expense 9,400 Wages (baking employees) 396,000 Research and development 5,100 Utilities for bakery space 26,000 Investment in mutual fund 56,000 Cash proceeds from loan 48,000 Wages (indirect labor) 44,000 Salaries (executives and office staff) 129,000 Brian was sure that not all of these amounts should be included in COGS but didn't know how to correctly sort them.