On January 1 of the current year, Townsend Co, commenced operations. It operated its plant at...

Transcribed Image Text:

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 January: Production Sales ($18 per unit) Inventory, January 311 Manufacturing costs: Variable Fixed Total Selling and administrative expenses: Variable Fixed Total Units 50,000 (42,000) 8,000 $575,000 80,000 $655,000 $35,000 10,500. $45,500 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 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 January: Production Sales ($18 per unit) Inventory, January 311 Manufacturing costs: Variable Fixed Total Selling and administrative expenses: Variable Fixed Total Units 50,000 (42,000) 8,000 $575,000 80,000 $655,000 $35,000 10,500. $45,500 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31