Cost of Goods Sold

Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 49,900 units will be produced, with the following total costs:

Direct materials?Direct labor63,000Variable overhead18,000Fixed overhead225,000

Next year, Pietro expects to purchase $118,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:

Direct materials InventoryWork-in-Process InventoryBeginning$6,000$13,800Ending$5,900$15,800

Pietro expects to produce 49,900 units and sell 49,200 units. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to be $31,000.

Required:

Question Content Area

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

Cost of Goods manufactured

Add: Beginning finished goods

cost of goods for sale

Less: Ending finished goods

Cost of goods sold