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	$73,000
Variable overhead	21,000
Fixed overhead	200,000

Next year, Pietro expects to purchase $130,000 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	$6,000	$14,400
Ending	$5,900	$16,400

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
	$fill in the blank b56fc107603affd_2
	fill in the blank b56fc107603affd_4
Materials available	$fill in the blank b56fc107603affd_5
	fill in the blank b56fc107603affd_7
Direct materials used in production		$fill in the blank b56fc107603affd_8
		fill in the blank b56fc107603affd_10
		fill in the blank b56fc107603affd_12
Total manufacturing costs added		$fill in the blank b56fc107603affd_13
		fill in the blank b56fc107603affd_15
		fill in the blank b56fc107603affd_17
Cost of goods manufactured		$fill in the blank b56fc107603affd_18

2. What if the ending inventory of direct materials increased by $2,700? Indicate the affect that this would have on the items listed below:

	Direction of change			Amount
Direct materials used		by		$fill in the blank d9e97a05906e012_2
Total manufacturing costs		by		$fill in the blank d9e97a05906e012_4
Cost of goods manufactured		by		$fill in the blank d9e97a05906e012_6