Operating incomeb. Prepare an income statement using variable costing.Townsend Co.Variable Costing Income StatementFor the Month Ended January 31Variable cost of goods sold:Fixed costs:Operating income0000 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 theresults for January:UnitsProduction50,000Sales ($18 per unit)(42,000)Inventory, January 318,000Manufacturing costs:Variable$575,000Fixed80,000Total$655,000Selling and administrative expenses:Variable$35,000Fixed10,500Total$45,500a. Prepare an income statement using absorption costing.Townsend Co.Absorption Costing Income StatementFor the Month Ended January 31Next

working notes: Sales (42000*$18) =7,56,000 manufacturing cost = 655000/50000 =13.10 = 8000 ( cost…

Answered: t at 100% of capacity during January.…

Business

Accounting

t at 100% of capacity during January. The following data summari.

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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