Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,900 units will be produced, with the following total costs: Direct materials ? Direct labor 52.000 Variable overhead 19.000 Fixed overhead 215,000 Next year, Pietro expects to purchase $127,500 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 $6,000 $10,700 Ending $5,900 $12,700 Pietro expects to produce 50,900 units and sell 50,200 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 2. What if the beginning inventory of finished goods decreased by $3,750? What would be the effect on the cost of goods sold? by s increase decrease no change