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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:
$ 35,000
10,500
$ 45,500
Required -
(a) Prepare an income statement using absorption costing.
(b) Prepare an income statement using variable costing.
A company had the following cash flows for the year: What amount would be reported for net investing cash flows on the Statement of Cash Flows
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