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Marshall Company is a large manufacturer of office furniture. The company has recently adopted lean accounting and has identiRequired: Prepare, in good form (.e., using Exhibit 17.17 as a guide), the value-stream income statement for Marshall Company

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Marshall Company
Value - Stream Income statement
Office Chairs Office Tables Total
Sales $ 2,95,000 $ 3,60,000 $   6,55,000
Operating costs:
Materials $     17,500 $     15,500
Labor $ 1,33,000 $ 1,01,500
Equipment - related costs $     45,500 $     64,800
Occupancy costs $     11,850 $     13,600
Total operating cost $ 2,07,850 $ 1,95,400 $   4,03,250
Value - stream profit before inventory change $     87,150 $ 1,64,600 $   2,51,750
Less: Value of reduction in Inventory $     -6,000 $   -24,500 $     -30,500
Value - stream profit $     81,150 $ 1,40,100 $   2,21,250
Less: Nontraceable costs
Manufacturing cost $ -1,66,750
Selling and administrative cost $     -50,000
Total nontraceable fixed costs $ -2,16,750
Operating Income $         4,500
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