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Frank, the manager at Danika's Danishes, was exeited 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 vear. Frank 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 Frank found when gathering information for his COGS calculation. Frank was sure that not all of these amounts should be included in COGS but didn't know how to correctly sort them. (a) Fill in the third column of the above chart by identifying whether each cost item should be initially recorded as an asset or as an expense. (b) Fill in the fourth column of the chart by recognizing if each item is considered to be inventoriable (product) cost or not. Given the costs you just calculated and recogniaing that the compary typically sets its selling prices at 140% of its product costs. What level of sales would Frank have ecpected? What gross margin percentage would this generate? (Round gross margin percentoge to 1 decimal place, eg. 15.2\%: Expected sales revenue $ Gross margin percentage \%

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