Income Statement ? Pietro Frozen Foods, Inc, produces frozen pizzas. For next year, Pietro predicts that 49,400 units will be produced, with the following total costs: Direct materials Direct labor 57,000 Variable overhead 25,000 Fixed overhead 225,000 Next year, Pietro 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 Work-in-Process Inventory Inventory Beginning $7,000 $10,300 Ending $6,900 $12,300 Next year, Pietro expects to produce 49,400 units and sell 48,700 units at a price of $17.00 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 $23,000, and total administrative expense is projected at $117,500. 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. Note: due to rounding, percentages may not add down. Pietro Frozen Foods, Inc. Income Statement For the Coming Year Pietro Frozen Foods, Inc. Income Statement For the Coming Year Percent % % % Less operating expenses: % 2. What if the cost of goods sold percentage for the past few years was 48.10 percent? Management's reaction might be