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 Fixed overhead 61,000 23,000 225,000 Next year, Pietro expects to purchase $123,500 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 $5,000 Beginning Ending $14,100 $16,100 $4,900 Pietro expects to produce 54,000 units and sell 53,300 units. Beginning inventory of finished goods is $45,500, and ending inventory of finished goods is expected to be $37,000. 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 $3,250? What would be the effect on the cost of goods sold? by $