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. During the first month of operations ended July 31, YoSan Inc. manufactured 11,300 flat panel televisions, of which 10,400 were sold. Operating data for the month are summarized as follows: Sales $1,820,000 Manufacturing costs: Direct materials $926,600 Direct labor 282,500 Variable manufacturing cost 237,300 Fixed manufacturing cost 124,300 1,570,700 Selling and administrative expenses: Variable $145,600 Fixed 67,000 212,600 Required: 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Cost of goods sold: Nex 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Cost of goods sold: 100 2. Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement For the Month Ended July 31 Variable cost of goods sold: Variable costing Income statement For the Month Ended July 31 Variable cost of goods sold: Fixed costs: 00 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2). The income from operations reported under costing exceeds the income from operations reported under costing by the difference between the two, due to manufacturing costs that are deferred to a future monith under costing. Next

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