chap 2 bex

Income Statement Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials Direct labor $100,000 Variable overhead 60,000 Fixed overhead 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: Direct Materials Inventory Work-in-Process Inventory Beginning $9,500 $4,500 Ending 5,000 2,500 Next year, Bob's Bistro expects to produce 50,000 units and sell 50,500 units at a price of $20.00 each. Beginning inventory of finished goods is $13,000, and ending inventory of finished goods is expected to be $10,000. Total selling expense is projected at $130,000, and total administrative expense is projected at $154,000. Required: 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 blank Percent Sales 1,010,000 100 % Cost of goods sold 625,000 61.88 % Gross margin 385,000 38.12 % Less: Operating expenses Selling expenses 130,000 Administrative expenses 154,000 284,000 28.1 X % Operating income 101,000 28.11 X %