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 (14,400 x $50) $720,000 Manufacturing costs (14,400 units): Direct materials 437,760 Direct labor 103,680 Variable factory overhead 48,960 Fixed factory overhead 57,600 Flved selling and administrative expenses 15,700 Variable selling and administrative expenses 19,000 The company is evaluating a proposal to manufacture 16,000 units instead of 14,400 units, thus creating an ending inventory of 1,000 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. 1. Prepare an estimated Income statement, comparing operating results if 14,400 and 16,000 units are manufactured in the absorption costing format. I an amount box does not require an entry leave it blank Marshall Inc Absorption Costing Income Statement For the Month Ending October 31 14,400 Units Manufactured 16,000 Units Manufactured Cost of goods sold Show Me How Printem Res box does not require an entry leave it blank Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 14,400 Units Manufactured 16,000 Units Manufactured Cost of goods sold I a. 2. Prepare an estimated income statement, comparing operating results if 14,400 and 16,000 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank. Marshall Inc. Variable Costing Income Statement For the Month Ending October 31 14,400 Units Manufactured 16,000 Units Manufactured does not require an entry leave it blank. Marshall Inc Variable Costing Income Statement For the Month Ending October 31 14,400 Units Manufactured 16,000 Units Manufactured Variable cost of goods sold: O QIL QILA QUJDID DOO Fixed costs Total fixed costs amount box a. 2. Prepare an estimated Income statement, comparing operating results if 14,400 and 16,000 units are manufactured in the variable costing format. If does not require an entry leave it bank Marshall Inc. Variable Costing Income Statement For the Month Ending October 31 14,400 Units Manufactured 16,000 Units Manufactured Variable cost of goods sold: QOID QUOD QULLUI DIO Fixed costs: Total fixed costs