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Peapod Company, a manufacturer of slippers, began operations on May 1 of the current year. During this time, the company produced 200,000 units and sold 180,000 units at a sales price of $36 per unit. Cost information for this period is shown in the following table: Production costs Direct materials Direct labor Variable overhead Fixed overhead Non-production costs Variable selling and administrative Fixed selling and administrative $4.00 per unit $5.75 per unit $286,000 in total $420,000 in total $8.000 in total $30.000 in total a. Prepare Peapod's December 31 income statement for the current year under absorption costing. b. Prepare Peapod's December 31 income statement for the current year under variable costing. 12