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: \begin{tabular}{|l|c|} \hline & Units \\ \hline Production & 50,000 \\ \hline Sales (\$18 per unit) & (42,000) \\ \hline Inventory, January 31 & 8,000 \\ \hline Manufacturing costs: & \\ \hline Variable & $575,000 \\ \hline Fixed & 80,000 \\ \hline Total & $655,000 \\ \hline Selling and administrative expenses: & \\ \hline Variable & $35,000 \\ \hline Fixed & 10,500 \\ \hline Total & $45,500 \\ \hline \end{tabular} Required: a. Prepare an income statement using absorption costing. * b. Prepare an income statement using variable costing. * *Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons (:) on the financial statements. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive