Cornerstone Exercise 2.3 (Algorithmic) Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 47,700 units will be produced, with the following total costs: Direct materials ? Direct labor 69,000 Variable overhead 22,000 Fixed overhead 205,000 Next year, Pietro expects to purchase $119,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Inventory Work-in-Process Inventory Beginning $7,000 $13,600 Ending $6,900 $15,600 Pietro expects to produce 47,700 units and sell 47,000 units. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to be $31,000. Required: Hide 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?