Question
Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro predicts that 52,000 units will be produced with the following total costs: Direct materials
Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro predicts that 52,000 units will be produced with the following total costs:
Direct materials | ? |
Direct labor | $74,000 |
Variable overhead | 16,000 |
Fixed overhead | 235,000 |
Next year, Bobs Bistro expects to purchase $130,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:
Direct materials Inventory | Work-in-Process Inventory | |
Beginning | $5,000 | $10,600 |
Ending | $4,900 | $12,600 |
Next year, Bobs Bistro expects to produce 52,000 units and sell 51,300 units at a price of $13.00 each. Beginning inventory of finished goods is $48,500, and ending inventory of finished goods is expected to be $40,000. Total selling expense is projected at $27,000, and total administrative expense is projected at $116,000.
1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35.
Percent | |||
Sales | $______ | _____% | |
Cost of goods sold | ______ | ______% | |
Gross margin | $_____ | ______% | |
Less: Operating expenses | |||
Selling expenses | $________ | ||
Administrative expenses | _______ | __________ | _________% |
Operating income | $_____ | _____% |
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