Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending January 31, Lemke Inc. estimated the following operating results: Sales (26,400 x $93) Manufacturing costs (26,400 units): $2,455,200 Direct materials 1,483,680 Direct labor 351,120 Variable factory overhead 163,680 Fixed factory overhead 195,360 Fixed selling and administrative expenses 53,100 Variable selling and administrative expenses 64,300 The company is evaluating a proposal to manufacture 29,600 units instead of 26,400 units, thus creating an ending inventory of 3,200 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 26,400 and 29,600 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank. Lemke Inc. Absorption Costing Income Statement For the Month Ending January 31 Line Item Description Cost of goods sold: 26,400 Units 29,600 Units Manufactured Manufactured eBook Show Me How Print Item Lemke Inc. Absorption Costing Income Statement For the Month Ending January 31 Line Item Description 26,400 Units 29,600 Units Manufactured Manufactured Cost of goods sold: a. 2. Prepare an estimated income statement, comparing operating results if 26,400 and 29,600 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank. Lemke Inc. Variable Costing Income Statement For the Month Ending January 31 Line Item Description 26,400 Units 29,600 Units Manufactured Manufactured Variable cost of goods sold: ebook Show Me How For the Month Ending January 31 Line Item Description Variable cost of goods sold: Fixed costs: Total fixed costs 26,400 Units 29,600 Units Manufactured Manufactured 10000 0000 10000