1. CEX.02.02.ALGO (Algorithmic) Cost of Goods Manufactured Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials Direct labor ? $69,000 Variable overhead 27,000 Fixed overhead i 210,000 Next year, Pietro expects to purchase $125,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Work-in-Process Inventory Inventory Beginning Ending $6,000 $12,300 $5,900 $14,300) Required: 1. Prepare a statement of cost of goods manufactured. Pietro Frozen Foods, Inc. Statement of Cost of Goods Manufactured For the Coming Year Direct materials $ Materials available Direct materials used in production. $ Total manufacturing costs added) Cost of goods manufactured 2. What if the ending inventory of direct materials increased by $1,9007 Indicate the affect that this would have on the items listed below: Direction of change Amount Direct materials used Total manufacturing costs Cost of goods manufactured by $ by $ by $