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 $75,000 24,000 Fixed overhead 180,000 Next year, Pietro expects to purchase $117,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Work-in-Process Inventory Inventory $6,000 Beginning Ending $14,900 $16,900 $5,900 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 Beginning inventory Materials available $ Direct materials used in production Total manufacturing costs added $ Cost of goods manufactured Next year, Pietro expects to purchia ,000 or direct materiais. Projected beginning and ending mvertories Tor direct materials and work cess dreds TONTOWS. Direct materials Inventory $6,000 $5,900 Work-in-Process Inventory $14,900 Beginning Ending $16,900 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 Beginning inventory 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 $2,700? Indicate the affect that this would have on the items listed below: Direction of change Amount Direct materials used by $ II Total manufacturing costs by $ Cost of goods manufactured by