Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (30,400 x $106) $3,222,400 Manufacturing costs (30,400 units): Direct materials 1,939,520 Direct labor 459,040 Variable factory overhead 215,840 Fixed factory overhead 255,360 Fixed selling and administrative expenses 69,500 Variable selling and administrative expenses 84,000 The company is evaluating a proposal to manufacture 33,600 units instead of 30,400 units, thus creating an ending inventory of 3,200 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 30,400 and 33,600 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank. Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 30,400 Units Manufactured 33,600 Units Manufactured Sales ? ? Cost of goods sold: Cost of goods manufactured ? ? Inventory, October 31 ? ? Total cost of goods sold ? ? Gross profit ? ? Selling and administrative expenses ? ? Operating income ? ? a. 2. Prepare an estimated income statement, comparing operating results if 30,400 and 33,600 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank. Marshall Inc. Variable Costing Income Statement For the Month Ending October 31 30,400 Units Manufactured 33,600 Units Manufactured Sales ? ? Variable cost of goods sold: Variable cost of goods manufactured ? ? Inventory, October 31 ? ? Total variable cost of goods sold ? ? Manufacturing margin ? ? Variable selling and administrative expenses ? ? Contribution margin ? ? Fixed costs: Fixed factory overhead ? ? Fixed selling and administrative expenses ? ? Total fixed costs ? ? Operating income ? ?

Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (30,400 x...

Estimated Income Statements, using Absorption and Variable Costing

Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results:

Sales (30,400 x $106)	$3,222,400
Manufacturing costs (30,400 units):
Direct materials	1,939,520
Direct labor	459,040
Variable factory overhead	215,840
Fixed factory overhead	255,360
Fixed selling and administrative expenses	69,500
Variable selling and administrative expenses	84,000

The company is evaluating a proposal to manufacture 33,600 units instead of 30,400 units, thus creating an ending inventory of 3,200 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses.

a. 1.
Prepare an estimated income statement, comparing operating results if 30,400 and 33,600 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank.

Marshall Inc.
Absorption Costing Income Statement
For the Month Ending October 31
	30,400 Units Manufactured	33,600 Units Manufactured
Sales	?	?
Cost of goods sold:
Cost of goods manufactured	?	?
Inventory, October 31	?	?
Total cost of goods sold	?	?
Gross profit	?	?
Selling and administrative expenses	?	?
Operating income	?	?

a. 2.
Prepare an estimated income statement, comparing operating results if 30,400 and 33,600 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank.

Marshall Inc.
Variable Costing Income Statement
For the Month Ending October 31
	30,400 Units Manufactured	33,600 Units Manufactured
Sales	?	?
Variable cost of goods sold:
Variable cost of goods manufactured	?	?
Inventory, October 31	?	?
Total variable cost of goods sold	?	?
Manufacturing margin	?	?
Variable selling and administrative expenses	?	?
Contribution margin	?	?
Fixed costs:
Fixed factory overhead	?	?
Fixed selling and administrative expenses	?	?
Total fixed costs	?	?
Operating income	?	?

Jun 01, 2022

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Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (30,400 x...

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