eBook Show How Calculator Printiem 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 (26,400 x $93) $2,455,200 Manufacturing costs (26,400 units): Direct materials 1,483,680 Direct labor 351,120 Variable factory overhead 163,680 Fixed factory overhead 195,360 Fixed selling and administrative expenses 53,100 Variable selling and administrative expenses 64,300 The company is evaluating a proposal to manufacture 29,600 units instead of 26,400 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 26,400 and 29,600 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 26,400 Units Manufactured 29,600 Units Manufactured Sales $ 2,455,200 2,455,200 Cost of goods sold: eBook Show Me How change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. Calculator Print Item a. 1. Prepare an estimated income statement, comparing operating results if 26,400 and 29,600 units are manufactured in the absorption o require an entry leave it blank. Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 26,400 Units Manufactured 29,600 Units Manufactured $ 2,455,200 2,455,200 Sales Cost of goods sold: Cost of goods manufactured $ $ X Inventory, October 31 X Total cost of goods sold $ 2,193,840 $ Gross profit $ 261,360 $ Selling and administrative expenses 117,400 X X X Operating income 143,960 $ Feedback Check My Work MP, Chapter 21 eBook Show Me How Calculator Print Item a. 2. Prepare an estimated Income statement, comparing operating results if 26,400 and 29,600 units are manufactured in the variable costing format. IF require an entry leave it blank. Marshall Inc. Variable Costing Income Statement For the Month Ending October 31 26,400 Units Manufactured 29,600 Units Manufactured Sales $ Variable cost of goods sold: Sales x $ s Inventory, October 31 Total variable cost of goods sold $ $ Manufacturing margin $ s Variable selling and administrative expenses Contribution margin S $ Fixed costs: Fixed factory overhead s Fixed selling and administrative expenses $ Total fixed costs $ $ Operating income