Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 51,500 units will be produced, with the following total costs: Direct materials ? Direct labor 63,000 Variable overhead 27,000 Fixed overhead 245,000 Next year, Pietro expects to purchase $118,000 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 $5,000 $10,000 Ending $4,900 $12,000 Next year, Pietro expects to produce 51,500 units and sell 50,800 units at a price of $18.00 each. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to be $31,000. Total selling expense is projected at $27,000, and total administrative expense is projected at $116,500. Required: Question Content Area 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 StatementFor the Coming Year Percent $- Select - - Select -% - Select - - Select -% $- Select - - Select -% Less operating expenses: $- Select - - Select - - Select - - Select -% $- Select - - Select -% Question Content Area 2. What if the cost of goods sold percentage for the past few years was 45.26 percent? Management's reaction might be:
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 51,500 units will be produced, with the following total costs: Direct materials ? Direct labor 63,000 Variable overhead 27,000 Fixed overhead 245,000 Next year, Pietro expects to purchase $118,000 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 $5,000 $10,000 Ending $4,900 $12,000 Next year, Pietro expects to produce 51,500 units and sell 50,800 units at a price of $18.00 each. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to be $31,000. Total selling expense is projected at $27,000, and total administrative expense is projected at $116,500. Required: Question Content Area 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 StatementFor the Coming Year Percent $- Select - - Select -% - Select - - Select -% $- Select - - Select -% Less operating expenses: $- Select - - Select - - Select - - Select -% $- Select - - Select -% Question Content Area 2. What if the cost of goods sold percentage for the past few years was 45.26 percent? Management's reaction might be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 51,500 units will be produced, with the following total costs:
| Direct materials | ? |
| Direct labor | 63,000 |
| Variable |
27,000 |
| Fixed overhead | 245,000 |
Next year, Pietro expects to purchase $118,000 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 | $5,000 | $10,000 |
| Ending | $4,900 | $12,000 |
Next year, Pietro expects to produce 51,500 units and sell 50,800 units at a price of $18.00 each. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to be $31,000. Total selling expense is projected at $27,000, and total administrative expense is projected at $116,500.
Required:
Question Content Area
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.
| Percent | |||
|
|
$- Select - | - Select -% | |
|
|
- Select - | - Select -% | |
|
|
$- Select - | - Select -% | |
| Less operating expenses: | |||
|
|
$- Select - | ||
|
|
- Select - | - Select - | - Select -% |
|
|
$- Select - | - Select -% |
Question Content Area
2. What if the cost of goods sold percentage for the past few years was 45.26 percent? Management's reaction might be:
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