Chapter 2, Problem 3CE

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. 1. Prepare a statement of cost of goods sold in good form.
2. 2. What if the beginning inventory of finished goods decreased by $5,000? What would be the effect on the cost of goods sold?