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 ae5862062016005_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 2e5864037064071_2 Variable cost of goods sold: $fill in the blank 2e5864037064071_4 fill in the blank 2e5864037064071_6 fill in the blank 2e5864037064071_8 $fill in the blank 2e5864037064071_10 fill in the blank 2e5864037064071_12 $fill in the blank 2e5864037064071_14 Fixed costs: $fill in the blank 2e5864037064071_16 fill in the blank 2e5864037064071_18 fill in the blank 2e5864037064071_19 Operating income $fill in the blank 2e5864037064071_20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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 ae5862062016005_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 2e5864037064071_2
Variable cost of goods sold:
	$fill in the blank 2e5864037064071_4
	fill in the blank 2e5864037064071_6
		fill in the blank 2e5864037064071_8
		$fill in the blank 2e5864037064071_10
		fill in the blank 2e5864037064071_12
		$fill in the blank 2e5864037064071_14
Fixed costs:
	$fill in the blank 2e5864037064071_16
	fill in the blank 2e5864037064071_18	fill in the blank 2e5864037064071_19
Operating income		$fill in the blank 2e5864037064071_20

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions