Question: cost of goods sold pietro frozen foods inc produces frozen...
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:
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.
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?