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: UnitsProduction 50,000Sales ($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 Fixed 10,500 Total $45,500 a. Prepare an income statement using absorption costing.Townsend Co.Absorption Costing Income StatementFor the Month Ended January 31 $fill in the blank cdb7fd038066009_2Cost of goods sold: $fill in the blank cdb7fd038066009_4 fill in the blank cdb7fd038066009_6 fill in the blank cdb7fd038066009_8 $fill in the blank cdb7fd038066009_10 fill in the blank cdb7fd038066009_12Operating income $fill in the blank cdb7fd038066009_13b. Prepare an income statement using variable costing.Townsend Co.Variable Costing Income StatementFor the Month Ended January 31 $fill in the blank 661e69f6b07a03e_2Variable cost of goods sold: $fill in the blank 661e69f6b07a03e_4 fill in the blank 661e69f6b07a03e_6 fill in the blank 661e69f6b07a03e_8 $fill in the blank 661e69f6b07a03e_10 fill in the blank 661e69f6b07a03e_12 $fill in the blank 661e69f6b07a03e_14Fixed costs: $fill in the blank 661e69f6b07a03e_16 fill in the blank 661e69f6b07a03e_18fill in the blank 661e69f6b07a03e_19Operating income $fill in the blank 661e69f6b07a03e_20

The details are given by a manufacturing company. Required Prepare an Income Statement using a.…

Answered: On January 1 of the current year,…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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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
Fixed		10,500
Total		$45,500

a. Prepare an income statement using absorption costing.

Townsend Co.
Absorption Costing Income Statement
For the Month Ended January 31
		$fill in the blank cdb7fd038066009_2
Cost of goods sold:
	$fill in the blank cdb7fd038066009_4
	fill in the blank cdb7fd038066009_6
		fill in the blank cdb7fd038066009_8
		$fill in the blank cdb7fd038066009_10
		fill in the blank cdb7fd038066009_12
Operating income		$fill in the blank cdb7fd038066009_13

b. Prepare an income statement using variable costing.

Townsend Co.
Variable Costing Income Statement
For the Month Ended January 31
		$fill in the blank 661e69f6b07a03e_2
Variable cost of goods sold:
	$fill in the blank 661e69f6b07a03e_4
	fill in the blank 661e69f6b07a03e_6
		fill in the blank 661e69f6b07a03e_8
		$fill in the blank 661e69f6b07a03e_10
		fill in the blank 661e69f6b07a03e_12
		$fill in the blank 661e69f6b07a03e_14
Fixed costs:
	$fill in the blank 661e69f6b07a03e_16
	fill in the blank 661e69f6b07a03e_18	fill in the blank 661e69f6b07a03e_19
Operating income		$fill in the blank 661e69f6b07a03e_20

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