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 Januany Units Production Sales ($18 per unit) Inventory, January 31 50,000 42,000 8,000 Manufacturing costs: $575,000 80,000 $655,000 Variable Fixed Total Selling and administrative expenses Variable $35,000 10,500 $45,500 Fixed Total a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For Morth Ended January 31, 20- Cost of goods sold: Previous Next me Remaining: 2:47:47 All work saved. Email Instructor Submit Test for Grading O Type here to search