Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 54,000 units will be produced, with the following total costs: ? Direct materials Direct labor Variable overhead 56,000 21,000 185,000 Fixed overhead Next year, Pietro expects to purchase $125,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Work-in-Process Beginning Ending Inventory $7,000 $6,900 Inventory $11,100 $13,100 Pietro expects to produce 54,000 units and sell 53,300 units. Beginning inventory of finished goods is $46,500, and ending inventory of finished goods is expected to be $38,000. 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 Cost of goods manufactured 387,000 x Add: Beginning finished goods 46,500 Cost of goods available for sale $ 433,500 Less: Ending finished goods 38,000 Cost of goods sold 395,500 2. What if the beginning inventory of finished goods decreased by $3,750? What would be the effect on the cost of goods sold? decrease by $ 344,250 X