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 using absorption costing.
(b) Prepare an income statement using variable costing.

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 using absorption costing. 
(b) Prepare an income statement using variable costing.

Quizplus · Accepted Answer

The Answer of 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 using absorption costing. 
(b) Prepare an income statement using variable costing.

On January 1 of the Current Year, Townsend Co