Instruction 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 Sales ($18 per unit) 50,000 42,000 Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable Fixed Total $35,000 10,500 $45,500 Required: (a) Prepare an income statement using absorption costing.* (b) Prepare an income statement using variable costing.*