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:ProductionSales ($18 per unit)Inventory, January 31Manufacturing costs:VariableFixedTotalSelling andadministrativeexpenses:VariableFixedTotalCost of goods sold:Units50,000(42,000)8,000Operating income$575,00080,000$655,000a. Prepare an income statement using absorption costing.Townsend Co.Absorption Costing Income StatementFor the Month Ended January 31Line Item Description Amount Amount$35,00010,500$45,500 b. Prepare an income statement using variable costing.Townsend Co.Variable Costing Income StatementFor the Month Ended January 31Line Item Description Amount AmountVariable cost of goods sold:Fixed costs:Total fixed costsOperating incometAtAALA

The income statement is prepared using different methods as absorption and variable costing. Using…

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 31 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 Line Item Description Amount Amount

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 31 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 Line Item Description Amount Amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Next
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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 ae5862062016005_2 Cost of goods sold: $fill in the blank ae5862062016005_4 fill in the blank ae5862062016005_6 fill in the blank ae5862062016005_8 $fill in the blank ae5862062016005_10 fill in the blank ae5862062016005_12 Operating income $fill in the blank…