Transcribed Image Text
In: AccountingCost of Goods SoldPietro Frozen Foods, Inc., produces frozen pizzas. For nextyear, Pietro predicts...Cost of Goods SoldPietro Frozen Foods, Inc., produces frozen pizzas. For nextyear, Pietro predicts that 49,100 units will be produced, with thefollowing total costs:Direct materials ?Direct labor 53,000Variable overhead 25,000Fixed overhead 185,000Next year, Pietro expects to purchase $128,000 of directmaterials. Projected beginning and ending inventories for directmaterials and work in process are as follows:Direct materialsInventory Work-in-ProcessInventoryBeginning $6,000 $14,000Ending $5,900 $16,000Pietro expects to produce 49,100 units and sell 48,400 units.Beginning inventory of finished goods is $47,500, and endinginventory of finished goods is expected to be $39,000.Required:1. Prepare a statement of cost of goods sold in good form.Pietro Frozen Foods, Inc.Statement of Cost of Goods SoldFor the Coming Year$$$2. What if the beginning inventory of finished goods decreasedby $3,750? What would be the effect on the cost of goodssold? by $