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 64,000 Variable overhead 19,000 Fixed overhead 240,000 Next year, Pietro expects to purchase $116,000 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 $5,000 $12,600 Ending $4,900 $14,600 Pietro expects to produce 54,000 units and sell 53,300 units. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to $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 Variable overhead Fixed overhead 19,000 240,000 Next year, Pietro expects to purchase $116,000 of direct materials. Projected beginning and ending inventories for direct material and work in process are as follows: Direct materials Work-in-Process Inventory Inventory Beginning $5,000 $12,600 Ending $4,900 $14,600 Pietro expects to produce 54,000 units and sell 53,300 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 2. What if the beginning inventory of finished goods decreased by $4,250? What would be the effect on the cost of goods sold? by $