Cost of Goods Sold

I am new at this, so hope this questions doesn't seem insignificant. Why are my COGS showing up on my "expenses not related to projects" report when most of them are assigned to projects? We are a manufacturing company and most of our cost is designated into our qouted price so we don't mark them as billable. But when we have T & M we do mark them as billable but they still show up on this report. Thank you ahead of time for your help.