Income Statement

Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 51,800 units will be produced, with the following total costs:

Direct materials	?
Direct labor	60,000
Variable overhead	19,000
Fixed overhead	200,000

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	$14,300
Ending	$5,900	$16,300

Next year, Pietro expects to produce 51,800 units and sell 51,100 units at a price of $15.00 each. Beginning inventory of finished goods is $43,500, and ending inventory of finished goods is expected to be $35,000. Total selling expense is projected at $25,000, and total administrative expense is projected at $110,500.

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.