Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 52,900 units will be produced, with the following total costs: Direct materials ? Direct labor 61,000 Variable overhead 21,000 Fixed overhead 215,000 Next year, Pietro expects to purchase $117,500 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 $11,600 Ending $3,900 $13,600 Pietro expects to produce 52,900 units and sell 52,200 units. Beginning inventory of finished goods is $40,500, and ending inventory of finished goods is expected to be $32,000. 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 Add: Beginning finished goods Cost of goods available for sale Less: Ending finished goods Cost of goods sold 2. What if the beginning inventory of finished goods decreased by $4,750? What would be the effect on the cost of goods sold? by $