Question
Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,500 units will be produced, with the following
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Cost of Goods Sold
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,500 units will be produced, with the following total costs:
Direct materials ? Direct labor 51,000 Variable overhead 19,000 Fixed overhead 200,000
Next year, Pietro expects to purchase $129,500 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 $14,000 Ending $5,900 $16,000
Pietro expects to produce 50,500 units and sell 49,800 units. Beginning inventory of finished goods is $47,500, and ending inventory of finished goods is expected to be $39,000.
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 $ $ $
2. What if the beginning inventory of finished goods decreased by $5,250? What would be the effect on the cost of goods sold? by $
Cost of Goods Sold
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,500 units will be produced, with the following total costs:
Direct materials | ? |
Direct labor | 51,000 |
Variable overhead | 19,000 |
Fixed overhead | 200,000 |
Next year, Pietro expects to purchase $129,500 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 | $14,000 |
Ending | $5,900 | $16,000 |
Pietro expects to produce 50,500 units and sell 49,800 units. Beginning inventory of finished goods is $47,500, and ending inventory of finished goods is expected to be $39,000.
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 | |
$ | |
$ | |
$ |
2. What if the beginning inventory of finished goods decreased by $5,250? What would be the effect on the cost of goods sold? by $
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