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

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  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 $

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