Cost of Goods Manufactured Refer to Brief Exercise 2-1. For next year, Bob’s Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials ? Direct labor Variable overhead Fixed overhead $ 100,000 60,000 260,000 Next year, Bob’s Bistro expects to purchase $195,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Beginning Ending Required: 1. Prepare a statement of cost of goods manufactured in good form. 2. What if the ending inventory of direct materials decreased by $3,000? Which line items on the statement of cost of goods manufactured would be affected and in what direction (increase or decrease)? Direct Materials Inventory $9,500 5,000 Work-in-Process Inventory $4,500 .
Cost of Goods Manufactured Refer to Brief Exercise 2-1. For next year, Bob’s Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials ? Direct labor Variable
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