Cost of Goods Sold

Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro predicts that 52,700 units will be produced with the following total costs:

Direct materials	?
Direct labor	$57,000
Variable overhead	26,000
Fixed overhead	220,000

Next year, Bobs Bistro expects to purchase $123,500 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	$4,000	$12,400
Ending	$3,900	$14,400

Bobs Bistro expects to produce 52,700 units and sell 52,000 units. Beginning inventory of finished goods is $38,500, and ending inventory of finished goods is expected to be $30,000.

Required:

Question Content Area

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

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 -

Question Content Area

2. What if the beginning inventory of finished goods increased by $4,750? What would be the effect on the cost of goods sold?

increase/decrease/no change by ??