Question

Cost of Goods Sold Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,200 units will be produced, with the following total costs: Direct materials ? Direct labor 58,000 Variable overhead 21,000 Fixed overhead 245,000 Next year, Pietro expects to purchase $128,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as fu Direct materials Work-in-Process Inventory Inventory Beginning $7,000 $14,000 Ending $6,900 $16,000 Pietro expects to produce 50, 200 units and sell 49,500 units. Beginning inventory of finished goods is $47,500, and ending inventory of finished goods is expecte

Answer 1

Calculation of Cost of goods amnufactured:

Particulars	Amount($)	Amount($)
Direct Materials
Begining Raw material	7,000
Add:Cost of raw material purchased	128,000
Total Raw material available	135,000
Less:Ending raw material	(6,900)
Raw material used		128,100
Direct Labor		58,000
Manufacturing Overhead
Variable overhead	21,000
Fixed overhead	245,000
Total manuifacturing overhead		266,000
Total Manufacturing cost		452,100
Add:Begining Work in Process		14,000
		466,100
Less:Ending Work in process		(16,000)
Cost of Goods Manufactured		450,100

1) Pietro Frozen Foods,Inc.

Statement of Cost of Goods Sold

for the coming year

Cost Of Goods Manufactured $450,100

Add;Begining Finished Goods $47,500

Cost of Goods Available for Sale $497,600

Less:Ending Finished Goods   ($39,000)

Cost of Goods Sold $458,600

2) If begining inventory of finished goods is decreased by $3,750,then cost of goods sold will also DECREASE by $3,750

Cost Of goods manufactured $450,100

Add:Begining finished goods (47,500-3,750) $43,750

Cost of goods available for sale $493,850

Less: Ending finished goods ($39,000)

Cost of goods sold $454,850