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 (15,200 x $53) $805,600   Manufacturing costs (15,200 units):   Direct materials 484,880   Direct labor 115,520   Variable factory overhead 53,200   Fixed factory overhead 63,840   Fixed selling and administrative expenses 17,400   Variable selling and administrative expenses 21,000   The company is evaluating a proposal to manufacture 16,800 units instead of 15,200 units, thus creating an ending inventory of 1,600 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.   PLEASE DOUBLE-CHECK WHAT I HAVE FOR THE ENTRY. THANK YOU. Please show work.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 (15,200 x $53) $805,600  
Manufacturing costs (15,200 units):  
Direct materials 484,880  
Direct labor 115,520  
Variable factory overhead 53,200  
Fixed factory overhead 63,840  
Fixed selling and administrative expenses 17,400  
Variable selling and administrative expenses 21,000  

The company is evaluating a proposal to manufacture 16,800 units instead of 15,200 units, thus creating an ending inventory of 1,600 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.

 

PLEASE DOUBLE-CHECK WHAT I HAVE FOR THE ENTRY. THANK YOU. Please show work.

a. 1. Prepare an estimated income statement, comparing operating results if 15,200 and 16,800 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
15,200 Units Manufactured
16,800 Units Manufactured
Sales
Cost of goods sold:
Cost of goods manufactured
Inventory, October 31
Total cost of goods sold
$
$
Gross profit
Selling and administrative expenses
Operating income
a. 2. Prepare an estimated income statement, comparing operating results if 15,200 and 16,800 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
15,200 Units Manufactured
16,800 Units Manufactured
Sales
$4
Variable cost of goods sold:
Variable cost of goods manufactured
Inventory, October 31
Total variable cost of goods sold
$4
$
Manufacturing margin
$
Variable selling and administrative expenses
Contribution margin
$4
Fixed costs:
Fixed manufacturing margin
Fixed selling and administrative expenses
Total fixed costs
Operating income
Transcribed Image Text:a. 1. Prepare an estimated income statement, comparing operating results if 15,200 and 16,800 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 15,200 Units Manufactured 16,800 Units Manufactured Sales Cost of goods sold: Cost of goods manufactured Inventory, October 31 Total cost of goods sold $ $ Gross profit Selling and administrative expenses Operating income a. 2. Prepare an estimated income statement, comparing operating results if 15,200 and 16,800 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 15,200 Units Manufactured 16,800 Units Manufactured Sales $4 Variable cost of goods sold: Variable cost of goods manufactured Inventory, October 31 Total variable cost of goods sold $4 $ Manufacturing margin $ Variable selling and administrative expenses Contribution margin $4 Fixed costs: Fixed manufacturing margin Fixed selling and administrative expenses Total fixed costs Operating income
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