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Business, 24.04.2020 21:50 amiraapplewell

Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (40,000 × $90) $3,600,000 Manufacturing costs (40,000 units): Direct materials 1,440,000 Direct labor 480,000 Variable factory overhead 240,000 Fixed factory overhead 120,000 Fixed selling and administrative expenses 75,000 Variable selling and administrative expenses 200,000 The company is evaluating a proposal to manufacture 50,000 units instead of 40,000 units, thus creating an ending inventory of 10,000 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 40,000 and 50,000 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

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Prior to the first month of operations ending October 31, Marshall Inc. estimated the following oper...
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