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 (24,000 x $83) $1,992,000 Manufacturing costs (24,000 units): Direct materials 1,204,800 Direct labor 285,600 Variable factory overhead 132,000 Fixed factory overhead 158.400 Fixed selling and administrative expenses 43,100 Variable selling and administrative expenses 52,100 The company is evaluating a proposal to manufacture 26,400 units instead of 24,000 units, thus creating an ending inventory 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. . 1. Prepare an estimated Income statement, comparing operating results if 24,000 and 26,400 units are manufactured in the absorption costing format. If on amount box does not require an entry leave it blank Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 24,000 Units Manufactured 26,400 Units Manufactured Sales 1,990,000 1,902,000 Cost of goods sold Cost of goods manufactured X 1,780,00 Fixed manufacturing costs x Previous Next Check My Workmore Check My Work uses remaining, All work saved Emal instructor Save and Exit Submit Assignment for Grading 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 ir 24,000 and 26,400 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 24,000 Units Manufactured 26,400 Units Manufactured Sales 1,992,000 1,992,000 1,780.800 Cost of goods sold: Cost of goods manufactured X Fixed manufacturing costs X Total fixed manufacturing costs X Gross profit Selling and administrative expenses 311.200 225.600 95.200 Operating Income Check wW a. 1. Recal thunder absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both feed and variable factory costs are included as part of factory overhead Calculate unit cost for direct materials direct labor, variable factory overhead, fed factory overhead. Add together to get total unit cost For 26.400 unts, use the same unit costs for direct materials directator, and variable overhead, but instead calculate the feed factory overhead and add this to obtain the unit cost at the 20.400 unit level, Sales - cost of goods manufactured Inventory, October 31) - Gross profit gross profitselling and administrative expenses income from operations. Remember that the Inventory, October 31 adjustment will only be necessary at the 20.400 level Previous Next > Check My Work Smore Check My Work uses remaining mallin All work saved Save and Ex Submit Assignment for Grading a. 2. Prepare an estimated Income statement, comparing operating results if 24,000 and 26,400 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 24,000 Units Manufactured 26,400 Units Manufactured Sales 1.999,000 1.999,000 Variable cost of goods sold: Variable selling and administrative expenses Contribution margin 360.600 Contribution margin Manufacturing margin 309.000 0.00 Variable selling and administrative expenses 59,100 59,100 Contribution margin 317.500 317.500 Fixed costs: Fixed factory overhead 158,00 158.400 Fixed selling and administrative expenses Total fixed costs 201,500 Operating income 116,000 116,000 Previous Previous Next > Check My Work 5 more Check My Work uses remaining