Income Statement Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 48,100 units will be produced with the following total costs: Direct materials Direct labor Variable overhead $68,000 27,000 235,000 Next year, Bob's Bistro expects to purchase $124,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Fixed overhead Beginning Ending Direct materials Inventory $4,000 $3,900 Work-in-Process Inventory $13,900 $15,900 Next year, Bob's Bistro expects to produce 48,100 units and sell 47,400 units at a price of $13.00 each. Beginning inventory of finished goods is $46,500, and ending inventory of finished goods is expected to be $38,000. Total selling expense is projected at $21,500, and total administrative expense is projected at $124,500. 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. Bob's Bistro Income Statement For the Coming Year Sales Cost of goods sold Gross margin Less: Operating expenses Selling expenses Administrative expenses Operating income 616,200 ✔ 0000 Percent 100 % % % % %
Income Statement Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 48,100 units will be produced with the following total costs: Direct materials Direct labor Variable overhead $68,000 27,000 235,000 Next year, Bob's Bistro expects to purchase $124,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Fixed overhead Beginning Ending Direct materials Inventory $4,000 $3,900 Work-in-Process Inventory $13,900 $15,900 Next year, Bob's Bistro expects to produce 48,100 units and sell 47,400 units at a price of $13.00 each. Beginning inventory of finished goods is $46,500, and ending inventory of finished goods is expected to be $38,000. Total selling expense is projected at $21,500, and total administrative expense is projected at $124,500. 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. Bob's Bistro Income Statement For the Coming Year Sales Cost of goods sold Gross margin Less: Operating expenses Selling expenses Administrative expenses Operating income 616,200 ✔ 0000 Percent 100 % % % % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Income Statement
Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 48,100 units will be produced with the following total costs:
Direct materials
Direct labor
Variable overhead
Fixed overhead
$68,000
27,000
235,000
Next year, Bob's Bistro expects to purchase $124,500 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
$13,900
$15,900
Next year, Bob's Bistro expects to produce 48,100 units and sell 47,400 units at a price of $13.00 each. Beginning inventory of finished goods is $46,500, and ending inventory of finished goods is expected to be $38,000. Total selling expense is
projected at $21,500, and total administrative expense is projected at $124,500.
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.
Bob's Bistro
Income Statement
For the Coming Year
Sales
Cost of goods sold
Gross margin
Less: Operating expenses
Selling expenses
Administrative expenses
Operating income
Percent
616,200
100 %
%
%
%
%
0000
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