Chapter 6 - Homework eBook Show Me How Calculator Print Item 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: $1,420,000 Sales (20,000 x $71) Manufacturing costs (20,000 units): Direct materials 852,000 202,000 Direct labor Variable factory overhead 94,000 Fixed factory overhead Fixed selling and administrative expenses 112,000 30,500 36,800 Variable selling and administrative expenses The company is evaluating a proposal to manufacture 22,400 units instead of 20,000 units, thus creating an Inventory, October 31 of 2,400 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 20,000 and 22,400 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank or enter "0". Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 20,000 Units Manufactured 22,400 Units Manufactured Cost of goods sold: Check My Work 5 more Check My Work uses remaining. Previous Assignment Score: 0.0% Save and Exit Submit Assignment for Grading Chapter 6 - Homework eBook Show Me How Calculator Print Item Cost of goods sold: Income from operations a. 2. Prepare an estimated income statement, comparing operating results if 20,000 and 22,400 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank or enter "0". Marshall Inc. Variable Costing Income Statement For the Month Ending October 31 20,000 Units Manufactured 22,400 Units Manufactured Variable cost of goods sold: Check My Work 5 more Check My Work uses remaining. Previous Assignment Score: 0.0% Save and Exit Submit Assignment for Grading Chapter 6 - Homework eBook Show Me How Calculator Print Item For the Month Ending October 31 20,000 Units Manufactured 22,400 Units Manufactured Variable cost of goods sold: Fixed costs: Total fixed costs b. What is the reason for the difference in income from operations reported for the two levels of production by the absorption costing income statement? number of units. Thus, the cost of goods The increase in income from operations under absorption costing is caused by the allocation of sold is . The difference can also be explained by the amount of overhead cost over a overhead cost included in the inventory. Check My Work 5 more Check My Work uses remaining. Previous Assignment Score: 0.0% Save and Exit Save and Exit Submit Assignment for Grading Submit Assignment for Grading Chapter 6 - Homework eBook Show Me How Calculator Print Item 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: $1,420,000 Sales (20,000 x $71) Manufacturing costs (20,000 units): Direct materials 852,000 202,000 Direct labor Variable factory overhead 94,000 Fixed factory overhead Fixed selling and administrative expenses 112,000 30,500 36,800 Variable selling and administrative expenses The company is evaluating a proposal to manufacture 22,400 units instead of 20,000 units, thus creating an Inventory, October 31 of 2,400 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 20,000 and 22,400 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank or enter "0". Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 20,000 Units Manufactured 22,400 Units Manufactured Cost of goods sold: Check My Work 5 more Check My Work uses remaining. Previous Assignment Score: 0.0% Save and Exit Submit Assignment for Grading Chapter 6 - Homework eBook Show Me How Calculator Print Item Cost of goods sold: Income from operations a. 2. Prepare an estimated income statement, comparing operating results if 20,000 and 22,400 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank or enter "0". Marshall Inc. Variable Costing Income Statement For the Month Ending October 31 20,000 Units Manufactured 22,400 Units Manufactured Variable cost of goods sold: Check My Work 5 more Check My Work uses remaining. Previous Assignment Score: 0.0% Save and Exit Submit Assignment for Grading Chapter 6 - Homework eBook Show Me How Calculator Print Item For the Month Ending October 31 20,000 Units Manufactured 22,400 Units Manufactured Variable cost of goods sold: Fixed costs: Total fixed costs b. What is the reason for the difference in income from operations reported for the two levels of production by the absorption costing income statement? number of units. Thus, the cost of goods The increase in income from operations under absorption costing is caused by the allocation of sold is . The difference can also be explained by the amount of overhead cost over a overhead cost included in the inventory. Check My Work 5 more Check My Work uses remaining. 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