Calculator Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas.

Question

Calculator Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 53,100 units will be produced, with the following total costs Direct materials Direct labor Variable overhead Fixed overhead Next year, Pietro expects to purchase $128,500 of direct process are as follows: 74,000 18,000 195,000 materials. Projected beginning and ending inventories for direct materials and work in Direct materials Work-in-Process Beginning Ending Pietro expects to produce 53,100 units and sell 52,400 units. Beginning inventory of finished goods is $44,500, and ending inventory of finished Inventory $7,000 $6,900 Inventory $12,400 $14,400 ur Pi goods is expected to be $36,000. 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 Cost of goods manufactured Add: Beginning finished goods Cost of goods available for sale Less: Cost of goods sold Cost of goods manufactured 2. What if the beginning inventory of flinished goods decreased by $5,5007 what would be the offect on the cost of goods by $ Next

Explanation / Answer

Material used = 7000+128500-6900 = 128600

Total manufacturing cost = 128600+74000+18000+195000 = 415600

Cost of goods manufactured = 415600+12400-14400 = 413600

2) Cost of goods sold = 413600+39000-36000 = 416600

Decrease by $5500

Pietro Frozen Foods Inc Statement of cost of goods sold For the coming year Cost of goods manufactured 413600 Add: Beginning finished goods 44500 Cost of goods available for sale 458100 Less: Ending finished goods -36000 Cost of goods sold 422100

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