1. Cost of Goods Sold

   Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,500 units will be produced, with the following total costs:

   Direct materials	?
   Direct labor	51,000
   Variable overhead	19,000
   Fixed overhead	200,000

   Next year, Pietro expects to purchase $129,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:

   	Direct materials Inventory	Work-in-Process Inventory
   Beginning	$6,000	$14,000
   Ending	$5,900	$16,000

   Pietro expects to produce 50,500 units and sell 49,800 units. Beginning inventory of finished goods is $47,500, and ending inventory 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 Sold
   For the Coming Year
   	$
   	$
   	$

   2. What if the beginning inventory of finished goods decreased by $5,250? What would be the effect on the cost of goods sold?
     by $

Answer rating: 100% (QA)

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