Business, 04.04.2020 12:40 queenkalah101
Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (24,800 x $86) $2,132,800 Manufacturing costs (24,800 units): Direct materials 1,282,160 Direct labor 302,560 Variable factory overhead 141,360 Fixed factory overhead 168,640 Fixed selling and administrative expenses 45,900 Variable selling and administrative expenses 55,500 The company is evaluating a proposal to manufacture 27,200 units instead of 24,800 units, thus creating an ending inventory of 2,400 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 24,800 and 27,200 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 24,800 Units Manufactured 27,200 Units Manufactured $ $ Cost of goods sold: $ $ $ $ $ $ $ $
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Prior to the first month of operations ending October 31, Marshall Inc. estimated the following oper...
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