On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during Janoary. The following data summarized the results for January: Units 50,000 Production Sales (518 per unit) Inventory, January 31 (42,000) 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses Variable $35,000 Fixed 10,500 $45,500 Total 750.000 a. Prepare an income statement using absorption couting Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 Sales Cost of goods sold Cost Loods manufactured 55,000 Ending inventory 104.00 Total cost of goods sold Crossfit Variable selling and administrative Operating income 550.00 205,000 -3.00 165.00 b. Prepare an income statement using waratile costing, Townsend Co. Variable Costing Income Statement For the Month Ended January 31 Sales Variable cost of goods sold: Variable cost od manufactured Mansacturing margin Total variable cost of goods sold 756.000 & 9 1. Prepare an income statement using variable costing, Townsend Co. Variable Costing Income Statement For the Month Ended January 31 Sales Variable cost of goods sold: Variable cost of goods manufactured Manufacturing margin 756,000 Total variable cost of goods sold Variable cost of goods manufactured Il di Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses 88 Operating income