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Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro predicts that 52,000 units will be produced with the following total costs:

Direct materials	?
Direct labor	$74,000
Variable overhead	16,000
Fixed overhead	235,000

Next year, Bobs Bistro expects to purchase $130,000 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	$10,600
Ending	$4,900	$12,600

Next year, Bobs Bistro expects to produce 52,000 units and sell 51,300 units at a price of $13.00 each. Beginning inventory of finished goods is $48,500, and ending inventory of finished goods is expected to be $40,000. Total selling expense is projected at $27,000, and total administrative expense is projected at $116,000.

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

			Percent
Sales		$______	_____%
Cost of goods sold		______	______%
Gross margin		$_____	______%
Less: Operating expenses
Selling expenses	$________
Administrative expenses	_______	__________	_________%
Operating income		$_____	_____%

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