n January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data...

n 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:UnitsProduction50,000Sales ($18 per unit)42,000Inventory, January 318,000Manufacturing costs:Variable$575,000Fixed80,000Total$655,000Selling and administrative expenses:Variable$ 35,000Fixed10,500Total$ 45,500(a) Prepare an income statement using absorption costing.(b) Prepare an income statement using variable costing.