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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 $