Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that...

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Accounting

Cost of Goods Sold
Pietro Frozen Foods, Inc., produces frozen pizzas. For nextyear, Pietro predicts that 49,400 units will be produced, with thefollowing total costs:
Direct materials ?
Direct labor 69,000
Variable overhead 27,000
Fixed overhead 240,000
Next year, Pietro expects to purchase $124,500 of directmaterials. Projected beginning and ending inventories for directmaterials and work in process are as follows:
Direct materials
Inventory Work-in-Process
Inventory
Beginning $6,000 $13,000
Ending $5,900 $15,000
Pietro expects to produce 49,400 units and sell 48,700 units.Beginning inventory of finished goods is $42,500, and endinginventory of finished goods is expected to be $34,000.
Required:
1. Prepare a statement of cost of goods sold ingood form.
Pietro Frozen Foods, Inc.
Statement of Cost of Goods Sold
For the Coming Year
$
$
$
2. What if thebeginning inventory of finished goods decreased by $5,000? Whatwould be the effect on the cost of goods sold?
by $

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1 Budgeted Cost of Goods Sold For the Coming Year a Work in Process Beginning Inventory 1300000 b Direct Materials c Direct Materials Beginning Inventory 600000 d Direct See Answer

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Direct materials	?
Direct labor	69,000
Variable overhead	27,000
Fixed overhead	240,000

	Direct materials Inventory	Work-in-Process Inventory
Beginning	$6,000	$13,000
Ending	$5,900	$15,000

Pietro Frozen Foods, Inc.
Statement of Cost of Goods Sold
For the Coming Year
	$

	$

	$