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  3. on january 1 of the current year, townsend co. com

On January 1 of the current year, Townsend Co. commenced operations. It operated its plant...

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Accounting

On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:Line Item DescriptionUnitsProduction50,000Sales ($18 per unit)(42,000)Inventory, January 318,000Manufacturing costs:Amount Variable$575,000 Fixed80,000 Total$655,000Selling and administrative expenses:Amount Variable$35,000 Fixed10,500 Total$45,500Question Content Areaa. Prepare an income statement using absorption costing.Townsend Co.Absorption Costing Income StatementFor the Month Ended January 31Line Item DescriptionAmountAmount$- Select -Cost of goods sold:$- Select -- Select -- Select -$- Select -- Select -Operating income$Operating incomeQuestion Content Areab. Prepare an income statement using variable costing.Townsend Co.Variable Costing Income StatementFor the Month Ended January 31Line Item DescriptionAmountAmount$- Select -Variable cost of goods sold:$- Select -- Select -- Select -$- Select -- Select -$- Select -Fixed costs:$- Select -- Select -blankTotal fixed costsTotal fixed costsOperating income$Operating income

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