Income Statement

Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro predicts that 53,400 units will be produced with the following total costs:

Direct materials?Direct labor$52,000Variable overhead16,000Fixed overhead180,000

Next year, Bobs Bistro expects to purchase $126,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:

Direct materials InventoryWork-in-Process InventoryBeginning$6,000$10,700Ending$5,900$12,700

Next year, Bobs Bistro expects to produce 53,400 units and sell 52,700 units at a price of $14.00 each. Beginning inventory of finished goods is $42,500, and ending inventory of finished goods is expected to be $34,000. Total selling expense is projected at $24,500, and total administrative expense is projected at $121,000.

Required:

Question Content Area

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.

. 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