Refer to Cornerstone Exercises 2-1 and 2-2.

Sodowsky expects to produce 150,000 units and sell 140,000 units. Beginning inventory of finished goods is $25,000 and ending inventory of finished goods is expected to be $74,000.

Required:

1. Prepare a statement of cost of goods sold in good form.

2. What if the beginning inventory of finished goods decreased by $5,000? What would be the effect on the cost of goods sold?

LO1