How to prepare income statement using absorption costing?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How to prepare income statement using absorption costing?

ome
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d Paused
For the Month Ended January 31
Sales
756,000
Cost of goods sold:
Cost of goods manufactured
Gross profit
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:
$
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Transcribed Image Text:ome CengageNOWv2 | Online teach X genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&i... d Paused For the Month Ended January 31 Sales 756,000 Cost of goods sold: Cost of goods manufactured Gross profit 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: $ Previous Next 1:52 PM 12/7/2020 acer ... %24 %24 %24 %24 %24 %24 レ
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d Paused
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:
Units
Production
50,000
Sales ($18 per unit)
(42,000)
Inventory, January 31
8,000
Manufacturing costs:
Variable
$575,000
Fixed
80,000
Total
$655,000
Selling and administrative expenses:
Variable
$35,000
10,500
Fixed
$45,500
Total
a. Prepare an income statement using absorption costing.
Townsend Co.
Absorntion Costing Income Statement
Previous
Next
1:52
み)
12/7
Transcribed Image Text:My Home CengageNOw v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&i... d Paused 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: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 10,500 Fixed $45,500 Total a. Prepare an income statement using absorption costing. Townsend Co. Absorntion Costing Income Statement Previous Next 1:52 み) 12/7
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