Direct materials Beginning Inventory Add: Purchases Materials available $4,000.00 117500 121500 3900 Less: Ending inventory Direct...

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Direct materials Beginning Inventory Add: Purchases Materials available $4,000.00 117500 121500 3900 Less: Ending inventory Direct materials used in production Direct labor Manufacturing Overhead Total manufacturing cost added Add: beginning work-in-process Less: ending work-in-process Cost of goods manufactures Cost of goods manufactures Add: beginning 390620 45500 finished goods Cost of goods 436120 available for sale Less: ending 37000 finished goods Cost of goods 399120 sold 117600 62000 213000 392600 11220 13200 390620 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. Sales Cost of goods sold Gross margin Income Statement For the Coming Year Percent % % Less operating expenses: Selling expenses Administrative expenses Operating income % % % 2. What if the cost of goods sold percentage for the past few years was 41.61 percent? Management's reaction might be: Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,400 units will be produced, with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead ? 62,000 23,000 190,000 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 Work-in-Process Beginning Ending Inventory $4,000 $3,900 Inventory $11,200 $13,200 Next year, Pietro expects to produce 50,400 units and sell 49,700 units at a price of $18.00 each. Beginning inventory of finished goods is $45,500, and ending inventory of finished goods is expected to be $37,000. Total selling expense is projected at $20,000, and total administrative expense is projected at $112,000. Direct materials Beginning Inventory Add: Purchases Materials available $4,000.00 117500 121500 3900 Less: Ending inventory Direct materials used in production Direct labor Manufacturing Overhead Total manufacturing cost added Add: beginning work-in-process Less: ending work-in-process Cost of goods manufactures Cost of goods manufactures Add: beginning 390620 45500 finished goods Cost of goods 436120 available for sale Less: ending 37000 finished goods Cost of goods 399120 sold 117600 62000 213000 392600 11220 13200 390620 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. Sales Cost of goods sold Gross margin Income Statement For the Coming Year Percent % % Less operating expenses: Selling expenses Administrative expenses Operating income % % % 2. What if the cost of goods sold percentage for the past few years was 41.61 percent? Management's reaction might be: Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,400 units will be produced, with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead ? 62,000 23,000 190,000 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 Work-in-Process Beginning Ending Inventory $4,000 $3,900 Inventory $11,200 $13,200 Next year, Pietro expects to produce 50,400 units and sell 49,700 units at a price of $18.00 each. Beginning inventory of finished goods is $45,500, and ending inventory of finished goods is expected to be $37,000. Total selling expense is projected at $20,000, and total administrative expense is projected at $112,000.