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 Variable overhead $73,000 18,000 Fixed overhead 210,000 Next year, Pietro expects to purchase $118,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Inventory $4,000 Work-in-Process Inventory $13,600 Beginning Ending $3,900 $15,600 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 $2,600? Indicate the affect that this would have on the items listed below: Direction of change Amount Direct materials used by Total manufacturing costs by $ Cost of goods manufactured by $