50,000 Production Sales ($18 per unit) Inventory, January 31 42,000 8,000 Manufacturing costs: Variable Fixed $575,000 80,000 Total $655,000 Selling and administrative expenses: Variable Fixed $35,000 10,500 $45,500 Total a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For Month Ended January 31, 20.. Sales Cost of goods sold: Cost of goods manufactured $575.000 75,600 b. Prepare an income statement using variable costing. Townsend Co. Variable Costing Income Statement For Month Ended January 31, 20-- Variable cost of goods sold: Fixed costs: Income from operations