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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.

Bob's Bistro Income Statement For the Coming Year
Percent

Sales

$______ _____%

Cost of goods sold

______ ______%

Gross margin

$_____ ______%
Less: Operating expenses

Selling expenses

$________

Administrative expenses

_______ __________ _________%

Operating income

$_____ _____%

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