Cost of Goods Sold

Bob$$s Bistro produces party$-$sized hoagie sandwiches. For next year, Bob$$s Bistro predicts that $49,100$ units will be produced with the following total costs:

Direct materials $?$

Direct labor $$61,000$

Variable overhead $25,000$

Fixed overhead $180,000$

Next year, Bob$$s Bistro expects to purchase $$115,000$ 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 $$6,000$ $$13,900$

Ending $$5,900$ $$15,900$

Bob$$s Bistro expects to produce $49,100$ units and sell $48,400$ units. Beginning inventory of finished goods is $$46,500,$ and ending inventory of finished goods is expected to be $$38,000.$

Required:

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$1.$ Prepare a statement of cost of goods sold in good form.

Bob$$s Bistro

Statement of Cost of Goods Sold

For the Coming Year

$Cost of goods manufactured

Add: Beginning finished goods

$Cost of goods available for sale

Less: Ending finished goods

$Cost of goods sold

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$1.$ See Example $2\mathrm{.}3$

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$2.$ What if the beginning inventory of finished goods increased by $$4,250?$ What would be the effect on the cost of goods sold?

by $fill in the blank ac$38$e$8001$f$90$f$8$f$\_2$

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