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Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 53,500 units will be produced, with the following total costs:

Income Statement

Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 53,500 units will be produced, with the following total costs:

Direct materials ?
Direct labor 52,000
Variable overhead 25,000
Fixed overhead 235,000

Next year, Pietro expects to purchase $117,500 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 $6,000 $11,800
Ending $5,900 $13,800

Next year, Pietro expects to produce 53,500 units and sell 52,800 units at a price of $16.00 each. Beginning inventory of finished goods is $44,500, and ending inventory of finished goods is expected to be $36,000. Total selling expense is projected at $24,500, and total administrative expense is projected at $101,500.

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.

Pietro Frozen Foods, Inc.
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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