Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 49,500 units will be produced, with the following total costs:

Direct materials	?
Direct labor	63,000
Variable overhead	23,000
Fixed overhead	180,000

Next year, Pietro expects to purchase $122,500 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	$5,000	$12,500
Ending	$4,900	$14,500

Pietro expects to produce 49,500 units and sell 48,800 units. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to be $31,000.

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
	$fill in the blank b6fca804ffa0035_2
	fill in the blank b6fca804ffa0035_4
	$fill in the blank b6fca804ffa0035_6
	fill in the blank b6fca804ffa0035_8
	$fill in the blank b6fca804ffa0035_10

2. What if the beginning inventory of finished goods decreased by $3,500? What would be the effect on the cost of goods sold? by $fill in the blank c097c8fee03806c_2