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Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (28,000 x $98) $2,744,000 Manufacturing costs (28,000

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Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (28,000 x $98) $2,744,000 Manufacturing costs (28,000 units): Direct materials 1,660,400 Direct labor 392,000 Variable factory overhead 184,800 Fixed factory overhead 218,400 Fixed selling and administrative expenses 59,400 Variable selling and administrative expenses 71,900 The company is evaluating a proposal to manufacture 31,200 units instead of 28,000 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 ir 28,000 and 31,200 units are manufactured in the absorption costing format. The company is evaluating a proposal to manufacture 31,200 units instead of 28,000 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 ir 28,000 and 31,200 units are manufactured in the absorption costing forma If an amount box does not require an entry leave it blank. Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 28,000 Units Manufactured 31,200 Units Manufactured Cost of goods sold: a. 2. Prepare an estimated income statement, comparing operating results if 28,000 and 31,200 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 28,000 Units Manufactured 31,200 Units Manufactured Variable cost of goods sold: Fixed costs: Doui lui Total fixed costs

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