During the first month of operations ended July 31, YoSan Inc. manufactured 8,800 flat panel televisions,...

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Accounting

During the first month of operations ended July 31, YoSan Inc.manufactured 8,800 flat panel televisions, of which 8,300 weresold. Operating data for the month are summarized as follows:
Sales $1,494,000
Manufacturing costs:
    Direct materials $748,000
    Direct labor 220,000
    Variable manufacturing cost 193,600
    Fixed manufacturing cost 96,800 1,258,400
Selling and administrative expenses:
    Variable $116,200
    Fixed 53,500 169,700
Required:
1. Prepare an income statement based on theabsorption costing concept.
YoSan Inc.
Absorption Costing Income Statement
For the Month Ended July 31
$
Cost of goods sold:
$
$
$
2. Prepare an income statement based on thevariable costing concept.
YoSan Inc.
Variable Costing Income Statement
For the Month Ended July 31
$
Variable cost of goods sold:
$
$
$
Fixed costs:
$
$
3. Explain the reason for the difference in theamount of income from operations reported in (1) and (2).
The income from operations reported under_ costing exceeds theincome from operations reported under costing by thedifference between the two, due to manufacturing costs that aredeferred to a future month under __ costing.
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3.9 Ratings (732 Votes)

Absorption Costing Sales 149400000 Product Cost Direct materials 74800000 Direct labor 22000000 Variable manufacturing cost 19360000 Fixed manufacturing cost 9130000 Period Cost Variable Selling and Admin Exp 11620000 Fixed Selling and Admin Expenses 5350000 Net See Answer

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Sales		$1,494,000
Manufacturing costs:
Direct materials	$748,000
Direct labor	220,000
Variable manufacturing cost	193,600
Fixed manufacturing cost	96,800	1,258,400
Selling and administrative expenses:
Variable	$116,200
Fixed	53,500	169,700

YoSan Inc.
Absorption Costing Income Statement
For the Month Ended July 31
		$
Cost of goods sold:
	$


		$

		$

YoSan Inc.
Variable Costing Income Statement
For the Month Ended July 31
		$
Variable cost of goods sold:
	$


		$

		$
Fixed costs:
	$


		$