Cost of Goods Sold

Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro predicts that 50,700 units will be produced with the following total costs:

Direct materials	?
Direct labor	$67,000
Variable overhead	19,000
Fixed overhead	210,000

Next year, Bobs Bistro expects to purchase $126,500 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	$12,500
Ending	$5,900	$14,500

Bobs Bistro expects to produce 50,700 units and sell 50,000 units. Beginning inventory of finished goods is $45,500, and ending inventory of finished goods is expected to be $37,000.

Required:

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

Bobs Bistro Statement of Cost of Goods Sold For the Coming Year

Cost of goods available for saleCost of goods manufacturedCost of goods soldEnding finished goods	$- Select -
Add: Beginning finished goodsAdd: Cost of goods available for saleAdd: Cost of goods soldAdd: Ending finished goods	- Select -
Cost of goods available for saleCost of goods manufacturedCost of goods soldEnding finished goods	$- Select -
Less: Beginning finished goodsLess: Cost of goods manufacturedLess: Cost of goods soldLess: Ending finished goods	- Select -
Beginning finished goodsCost of goods manufacturedCost of goods soldEnding finished goods	$- Select -

2. What if the beginning inventory of finished goods increased by $5,750? What would be the effect on the cost of goods sold?

increasedecreaseno change