How would you format dialogue that is in the middle of a sentence?

Question

Below I will provide an example sentence in various forms to demonstrate what I mean. I want to see which punctuation is correct or most widely accepted. My assumption is an example will be correct along with example 4, which is the one I see used the most.

I'm most interested in knowing whether example 1 or example 2 is correct. I typically use example 1, treating the dialogue like a quotation.

I'm sure there's other ways to punctuate that I'm forgetting, so please tell me if you know what!

(Another question I have that's relevant to this is with quotations: whether the comma/full stop is placed inside or outside of the quotation marks. I assume it's dependent on whether there is a comma or full stop at the end of the quote itself, but I usually put commas and full stops on the inside.)

Example 1:

He flipped the pancake with a twist of his wrist and said, "Good morning," right as it hit the pan.

Example 2:

He flipped the pancake with a twist of his wrist and said "Good morning" right as it hit the pan.

Example 3:

He flipped the pancake with a twist of his wrist and said, "Good morning" right as it hit the pan.

Example 4:

He flipped the pancake with a twist of his wrist and said, "Good morning!" right as it hit the pan.

Keep in mind that I want to know how to punctuate a very particular kind of dialogue, so I'm not looking for suggestions that just move the dialogue to one end or split it into two sentences. The sentence itself doesn't matter. By that, I mean I'm not looking for anything like this:

He flipped the pancake with a twist of his wrist. "Good morning!" he said as it hit the pan.

He flipped the pancake with a loose grip on the pan handle. "Good morning."

He flipped the pancake with a twist of his wrist and as it hit the pan he said, "Good morning."

"Good morning," he said as he flipped the pancake with a practiced wrist flick.

Answer 1

The rules are:

1. "When it is simply a matter of iden­tifying a speaker, a comma is used after said, replied, asked, and similar verbs to introduce a quotation." (Chicago Manual of Style, 3.14)

   From this follows that your example 2 (... "..." ...) is wrong.

2. "When the sentence is inverted and the quotation comes first (a common arrangement), a comma is usually required at the end of the quotation unless the quotation ends with a question mark or an exclamation point." (ibid.)

   From this follows that you examples 2 (... "..." ...) and 3 (..., "..." ...) are wrong.

Implicitly, your examples 1 (..., "...," ...) and 4 (..., "...!" ...) are correct.

Which you choose will depend on whether the speech is said (1) or shouted (4). As you write that "He ... said" the utterance, example 4 seems contradictory and feels irritating. But from the punctuation alone, both 1 and 4 are orthographically correct (according to the Chicago Manual of Style; other rules may apply to other varieties of English).