Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 51,100 units will be produced, with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead 63,000 16,000 215,000 Next year, Pietro expects to purchase $126,000 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 Beginning $4,000 $13,400 Ending $3,900 $15,400 Pietro expects to produce 51,100 units and sell 50,400 units. Beginning inventory of finished goods is $41,500, and ending inventory of finished goods is expected to be $33,000. 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 sold Add: Cost of goods sold 2. What if the beginning inventory of finished goods decreased by $5,500? What would be the effect on the cost of goods sold? by $