Question
Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 51,100 units will be produced, with the following total costs:
Income Statement
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 51,100 units will be produced, with the following total costs:
Direct materials | ? |
Direct labor | 68,000 |
Variable overhead | 15,000 |
Fixed overhead | 195,000 |
Next year, Pietro expects to purchase $124,000 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 | $4,000 | $12,900 |
Ending | $3,900 | $14,900 |
Next year, Pietro expects to produce 51,100 units and sell 50,400 units at a price of $17.00 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 $20,500, and total administrative expense is projected at $126,000.
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.
Note: due to rounding, percentages may not add down.
Pietro Frozen Foods, Inc. | |||
Income Statement | |||
For the Coming Year | |||
Percent | |||
$fill in the blank 7b00aa04e067000_2 | fill in the blank 7b00aa04e067000_3% | ||
fill in the blank 7b00aa04e067000_5 | fill in the blank 7b00aa04e067000_6% | ||
$fill in the blank 7b00aa04e067000_8 | fill in the blank 7b00aa04e067000_9% | ||
Less operating expenses: | |||
$fill in the blank 7b00aa04e067000_11 | |||
fill in the blank 7b00aa04e067000_13 | fill in the blank 7b00aa04e067000_14 | fill in the blank 7b00aa04e067000_15% | |
$fill in the blank 7b00aa04e067000_17 | fill in the blank 7b00aa04e067000_18% |
2. What if the cost of goods sold percentage for the past few years was 45.69 percent? Management's reaction might be:
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