Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 51,500 units will be produced, with the following total costs: Direct materials ? Direct labor 60,000 Variable overhead 20,000 Fixed overhead 190,000 Next year, Pietro expects to purchase $123,000 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 $7,000 $11,500 Beginning Ending $6,900 $13,500 Pietro expects to produce 51,500 units and sell 50,800 units. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to be $31,000. Required: 1. Prepare a statement of cost of goods sold in good form. Pietro Frozen Foods, Inc. Statement of Cost of Goods Sold For the Coming Year For the Coming Year 2. What if the beginning inventory of finished goods decreased by $4,500? What would be the effect on the cost of goods sold? by $