Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,700 units will be produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead $72,000 22,000 245,000 Next year, Bob's Bistro expects to purchase $118,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Beginning Ending Direct materials Inventory $7,000 $6,900 Work-in-Process Inventory $14,300 $16,300 Bob's Bistro expects to produce 50,700 units and sell 50,000 units. Beginning inventory of finished goods is $42,500, and ending inventory of finished goods is expected to be $34,000. Required: 1. Prepare a statement of cost of goods sold in good form. Bob's Bistro Statement of Cost of Goods Sold For the Coming Year Cost of goods manufactured Add: Beginning finished goods Cost of goods available for sale Less: Ending finished goods Cost of goods sold Feedback Check My Work 1. See Example 2.3 2. What if the beginning inventory of finished goods increased by $4,000? What would be the effect on the cost of goods sold? increase - by