Do tancay 1 of the current year, Townsend Co. commenced operations. It operated its plane at 100% of capacity during January. The following data summarized the results for January Production Ses (618 per unit) Inventory, January 31 Units 50,000 {$2,000) 3,000 Manufacturing costs Variable $575,000 80.000 1555.000 Total Selling and administrative expenses Variable $35.000 10,500 545.500 aren inom ng astion costing Townsend Co a. Prepare an income statement using absorption costing Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 Cost of goods sold 0 Operating income b. Prepare an income statement using variable costing. Townsend Co. Variable Costing Income Statement For the Month Ended January 31 Variable cost of goods sold: Fixed costs: Operating income