Answer Happy

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
(17,600 x $60) $1,056,000 Manufacturing costs (17,600 units):
Direct materials 642,400 Direct labor 151,360 Variable factory
overhead 70,400 Fixed factory overhead 84,480 Fixed selling and
administrative expenses 23,000 Variable selling and administrative
expenses 27,800 The company is evaluating a proposal to manufacture
19,200 units instead of 17,600 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. a. 1. Prepare an estimated income statement, comparing
operating results if 17,600 and 19,200 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