Description of this paper

Prepare an income statement in accordance with absorption costing.

Description

solution


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;(a) Prepare an income statement in accordance with absorption costing.;Townsend Co.;Absorption Costing Income Statement;For Month Ended January 31, 20--;Sales $;Cost of goods sold;Cost of goods manufactured $;Less inventory, January 31, 20--;Cost of goods sold;Gross profit $;Selling and administrative expenses;Income from operations $;(b) Prepare an income statement in accordance with variable costing.;Townsend Co.;Variable Costing Income Statement;For Month Ended January 31, 20--;Sales $;Variable cost of goods sold;Variable cost of goods manufactured $;Less inventory, January 31, 20--;Variable cost of goods sold;Manufacturing margin $;Variable selling and administrative expense;Contribution margin $;Fixed costs;Fixed manufacturing costs $;Fixed selling and administrative expenses;Income from operations $

 

Paper#26780 | Written in 18-Jul-2015

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