Reference no: EM133029535

Question - Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials, ???; Direct labor, 60,000; Variable overhead, 25,000; and Fixed overhead, 220,000. Next year, Pietro expects to purchase 119,300 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:

Direct Materials Inventory, beginning: 5,600

Direct Materials Inventory, ending: 4,900

Work-in-Process Inventory, beginning: 12,500

Work-in-Process Inventory, ending: 14,600

Pietro expects to sell 49,300 units at a price of 12.50 each. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Total selling expense is projected at 26,000, and total administrative expense is projected at 134,000.

Required -

1. Calculate the prime cost per unit.

2. Calculate the conversion cost per unit.

3. Calculate the total variable cost per unit.

4. Calculate the total product (manufacturing) cost per unit.

5. Prepare an income statement, with supporting note for cost of sales.