Cost of Goods Sold Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead Next year, Bob's Bistro expects to purchase $195,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Required: Direct Materials Inventory $9,500 5,000 Beginning Ending Bob's Bistro expects to produce 50,000 units and sell 50,500 units. Beginning inventory of finished goods is $13,000, and ending inventory of finished goods is expected to be $10,000. Cost of goods manufactured Add: Beginning finished goods Cost of goods available for sale Less: Ending finished goods Cost of goods sold Feedback 1. Prepare a statement of cost of goods sold good form. Bob's Bistro Statement of Cost of Goods Sold For the Coming Year ? $100,000 60,000 260,000 Check My Work 1. See Example 2.3 Work-in-Process Inventory $4,500 2,500 by $725,000 X $ $ 720,000 X 13,000 733,000 X -10,000 $ 623,000 X 2. What if the beginning inventory of finished goods increased by $4,000? What would be the effect on the cost of goods sold? increase