Calculator Instruction Labels and Amount Descriptions Absorption Costing Income Statement Instruction On January 1 of the current year, Townsend Co. commenced operations. It operated its plantat 100% of capachy during January. The following data summarized the results for January Units Production 50.000 Sales (518 per unit) (42,000) Inventory, January 31 8.000 Manufacturing costs Variable $575.000 Fixed 80,000 Varble cost of goods sold B esty Grade Calculator Instruction Labels and Amount Descriptions Absorption Costing Income Statement Instruction Foxed 80.000 Total $655,000 Selling and administrative expenses: Variable $35,000 10.500 Tot $45.00 Required: a. Prepare an income statement using absorption costing b. Prepare an income statement using variable costing Variation of goods sold