Estimated Income Statements, using Absorption and Variable Costing
Prior to the first month of operations ending October Marshall Inc. estimated the following operating results:
Sales $
$
Manufacturing costs units:
tableDirect materials,Direct labor,Variable factory overhead,Fixed factory overhead,Fixed selling and administrative expenses,Variable selling and administrative expenses,
The company is evaluating a proposal to manufacture units instead of units, thus creating an ending inventory of 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 Prepare an estimated income statement, comparing operating results if and 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
Cost of goods sold:
Units Manufactured Units Manufactured
$ $
$
