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 Fixed overhead Next year, Pietro expects to purchase $122,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows $65,000 16,000 195,000 Direct materials Work-in-Process Inventory $5,000 $4,900 Inventory $10,900 $12,900 Beginning Ending Required: 1. Prepare a statement of cost of goods manufactured 2. What if the ending inventory of direct materials increased by $1,500? Indicate the affect that this would have on the items listed below: Direction of change decrease decrease decrease Amount Direct materials used Total manufacturing costs Cost of goods manufactured by $ by $ by $