Cost of Goods Manufactured Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials Direct labor Variable overhead 7 $100,000 60,000 Fixed overhead 260,000 Next year, Bob's Bistro expects to purchase $195,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Beginning Ending Direct Materials Inventory $9,500 5,000 Work-in-Process Inventory $4,500 2,500 1. Prepare a statement of cost of goods manufactured in good form. Bob's Bistro Statement of Cost of Goods Manufactured For the Coming Year Direct materials Beginning inventory Add: Purchases: Materials available Less: Ending inventory Direct materials used in production Direct labor Manufacturing (Factory) overhead Total manufacturing costs added Add: Beginning work in process Less: Ending work in process Cost of goods manufactured Feedback Check My Work 1. See Example 2.2 2. What if the ending inventory of direct materials decreased by $3,000? Indicate the affect that this would have on the items listed below: Direction of change Amount Direct materials used increase by $3,000 Total manufacturing costs increase by $3,000 Cost of goods manufactured increase by $3,000