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 capacity during January. The following data summarized the results for January Units Production 50,000 Sales ($18 per unit) 42,000 Inventory, January 31 8,000 Manufacturing costs Variable $575,000 Fixed 30.000 5655000 Total Soling and administrative expenses Variable $35.000 10.500 Fixed Labels and Amount Descriptions Absorption Costing Income Statement Instruction Variable $575,000 Fixed 30,000 Total $655,000 Selling and administrative expenses Variable $35,000 Fived 10.500 Total $ 45,500 Required: (a) Prepare an income statement using absorption costing (D) Prepare an income statement using vanable costing *Refer to the lists of Labels and Amount Descriptions for the exact wording of the answe choices for text entries. Be sure to complete the statement heading Loss" or "Plus" will automatically appear it is required. You will not need to enter colons() on the financial statements a ner loss is incurred, enter that amount as a negative number using a minus sign Prevo Check My Work 1 more Check My Work uses remaining Labels and Amount Descriptions Fixed costs For Month Ended January 31, 20- Amount Descriptions Contribution margin Cost of goods manufactured Cost of goods sold Fixed manufacturing costs Fixed selling and administrative expenses Gross profit Income from operations Inventory, January 31, 20-- Manufacturing margin Sales Selling and administrative expenses Variable cost of goods manufactured Variable cost of goods sold Variable selling and administrative expenses x Labels and Amount Descriptions Absorption Costing Income Statement Townsend Co Absorption Costing Income Statement For Month Ended January 1 Sales $756,000.00 2 Cost of goods sold: Cost of goods manufactured Less Fixed manufacturing costs 5 $575,000.00 4 80,000.00 5 & fixed selling and administrative + Less selling and admin $160,500.00 net income Variable Costing Income Statement Townsend Co. Variable Costing Income Statement For Month Ended january 31 1 Sales $756,000.00 2 Variable cost of goods sold: 5 Cost of goods manufactured $575,000.00 Less inventory 5 482.000.00 Variable cost of goods sold 6 Manufacturing margin 1 Variable selling and administrative expenses $273,000.00 35,000.00 Contribution margin: 10 Fixed manufacturing costs $80,000.00 11 fixed selling and administrative 10,500.00 90.500.00 12 Income from operations $147,500.00