Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead $60,000 25,000 220,000 Next year, Pietro expects to purchase $119,300 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Beginning Ending Direct Materials Inventory $5,600 4,900 Work-in-Process Inventory $12,500 14,600 Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is $42,500, and ending inventory of finished goods is expected to be $34,000. 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 $5,000? What would be the effect on the cost of goods sold?