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Operating costs: Materials Labor Equipment-related costs Occupancy costs Chairs $ 16,700 125,000 44,700 11,450 Tables $ 14,700 97,500 63,200 12,800 In addition to the
Operating costs: Materials Labor Equipment-related costs Occupancy costs Chairs $ 16,700 125,000 44,700 11,450 Tables $ 14,700 97,500 63,200 12,800 In addition to the traceable operating costs, the company had manufacturing costs of $126.750 million, and selling and administrative costs of $25 million 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 streams significantly. Marshall has calculated the fixed cost of prior-period inventory that is included in the current income statement to be $6.5 million for the office chair stream and $20.5 million for the office table stream. Required: Prepare, in good form (i.e., using Exhibit 17.17 as a guide), the value-stream income statement for Marshall Company. (Enter your answers in thousands of dollars.) Sales Operating costs: Material Labor Equipment-related costs Occupancy costs Total operating costs Value-stream profit before inventory change Less: Cost of decrease in inventory Value-stream profit Less: Nontraceable costs Manufacturing Selling and administration Total nontraceable fixed costs Operating income MARSHALL COMPANY Value-Stream Income Statement (000s) Office Chairs Office Tables Total $ 255,000 $ 320,000 $ 575,000 $ 16,700 125,000 44,700 11,450 $ 14,700 97,500 63,200 12,800 197,850 57,150 188,200 $ 131,800 386,050 188,950 0 0 $ 57,150 $ 131,800 $ 188,950 $ 0 $ 188,950
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