San Ysidro Company manufactures hiking equipment. The company's administrative and manufacturing operations share the company's only building. Eighty percent of the building is used for manufacturing and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor.

The cost accountant at San Ysidro has compiled the following information for the year ended December 31:

Administrative salaries$192,000Attorney fees to settle zoning dispute22,960Building depreciation (manufacturing portion only)181,440Cost of goods manufactured2,776,760Direct materials inventory, December 31248,000Direct materials purchased during the year1,008,000Direct materials used1,069,880Distribution costs4,480Finished goods inventory, January 1224,000Finished goods inventory, December 31252,000Insurance (on plant machinery)53,200Maintenance (on plant machinery)33,880Marketing costs103,600Other plant costs82,160Plant utilities104,160Sales revenue4,550,000Taxes on manufacturing property38,800Total (direct and indirect) labor1,209,600Work-in-process inventory, January 172,520Work-in-process inventory, December 3168,880

what is Cost of goods sold?