During the first month of operations ended July 31, 2014, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows:

Instructions
1. Prepare an income statement based on the absorption costing concept.
2. Prepare an income statement based on the variable costing concept.
3. Explain the reason for the difference in the amount of income from operations reported in (1) and(2).

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$2,150,000 Manufacturing costs: Direct labor Variable manufacturing cost 420,000 156,000 288000 . 1,824,000 Selling and administrative expenses: $204000 96,000 300,000