The Jiffy Manufacturing Company was started at the beginning of the current year when it acquired $100,000 from its owners. During the incurred the following costs, all for cash: the company year, Direct material costs $40,000 50,000 20,000 30,000 Direct labor costs Overhead costs Selling and administrative costs The company produced 10,000 units of product and sold 8,000 units. The average selling price was $17 per unit; all sales were for cash. Required: The accountant who prepared the firm's financial statements misclassified the selling and administrative costs as product costs. Demonstrate the impact of the error on the company's income statement and balance sheet by completing the following schedule: Scenario 1: With the error Scenario 2: Without the error Income statement: Revenue Less: Cost of goods sold Gross margin Less: Selling, general, and administrative expenses Net income Balance sheet: Assets Cash Inventory Total assets Equity Common stock Retained earnings Total equity