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 49,100 units will be produced, with thefollowing total costs:
Direct materials ?
Direct labor 53,000
Variable overhead 25,000
Fixed overhead 185,000
Next year, Pietro expects to purchase $128,000 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 $14,000
Ending $5,900 $16,000
Pietro 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 Sold
For 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 $

Answer & Explanation Solved by verified expert

3.8 Ratings (408 Votes)

Solution From the given data we need to find question 1 and 2 These calculations are explained below Answer 1 Pietro Frozen Foods inc Statement of cost of goods sold for the coming year See Answer

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Transcribed Image Text

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 $