$1.$ Burlap $\backslash$& Barrel Spices is in its second year selling high$-$end, single origin spices and spice blends. Its products sell for an average of $\backslash (\backslash$$ $20\backslash )$ per unit.

In its first year, Burlap $\backslash$& Barrel produced $60,000$ units, but only sold $40,000.$ In the second year, it expects to produce $40,000$ units and sell $50,000$ units. The company's cost structure was the same for both the first and second years of operation, and it tracks inventory using the FIFO method.

a$.$ Prepare an income statement for Burlap $\backslash$& Barrel's second year using absorption costing.

b$.$ Prepare an income statement for Burlap $\backslash$& Barrel's second year using variable costing.