1. Prepare an income statement for last year. Show the percentage of sales that each line item represents. When required, 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.

   Brody Company
   Income Statement
   For Last Year
   		Percent
   	$	%
   		%
   	$	%
   Less: Operating expenses
   		%
   		%
   	$	%

   Cost Assignment Methods

   Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year:

   Raw materials purchases	$250,000
   Direct labor	140,000
   Depreciation on factory equipment	45,000
   Depreciation on factory building	30,000
   Depreciation on headquarters building	50,000
   Factory insurance	15,000
   Property taxes:
   Factory	20,000
   Headquarters	18,000
   Utilities for factory	34,000
   Utilities for sales office	1,800
   Administrative salaries	150,000
   Indirect labor salaries	156,000
   Sales office salaries	90,000
   Beginning balance, raw materials	124,000
   Beginning balance, work in process	124,000
   Beginning balance, finished goods	84,000
   Ending balance, raw materials	102,000
   Ending balance, work in process	130,000
   Ending balance, finished goods	82,000

   Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.