Ch 17 q. 3

Maratall Company is a Lrge manufacturer of office furnituse The company bas recently adopted lean accounting and has identified two value streams -office chairs and office tables. Totat sales in the most recent peniod for the fwo streams are $280 and $345 million. respectively. In the most recent accounting period, Marshall had the following operating costs, which were traced to the two value streams as follows in thousands): In addition to the traceable operaung costs, the company had manufacturing costs of $151750 million, and seling and aciministrative costs of 535 mition that could not be traced to either value stream. Due to the implementation of lean methods. the firm has been able to reduce inventory in both value stiesms significantly. Marshall has calculated the fixed cost of prior-period inventory that is included in the current income statement to be $45 million for the office chair stream and $230 miltion for the office table stream. Required: Prepare, in good form (l.e, using Exhbit 1717 as a guidel, the value-stream income statement for Marshall Company. (Enter your onswers in thousands of dollars.)