12 AA PR 20-1B Absorption and variable costing income statements Obj. 1, 2 During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: SHOW ME HOW $2,150,000 Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $960,000 420,000 156,000 288,000 1,824,000 $204,000 96,000 300,000 Instructions 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. Answer + Based on your work on Problem 20-1B. Question 1 (10 points) In the variable costing income statement, the variable cost of goods sold is $ Question 2 (10 points) In the absorption costing income statement, the total number of units manufactured and total number of units sold are equal. True False Question 3 (10 points) In the variable costing income statement, the manufacturing margin is $ Question 4 (10 points) Saved Question 4 (10 points) The income from operations reported in the absorption costing income statement is $ Question 5 (10 points) The selling and administrative expenses reported in the absorption costing income statement includes only variable selling and administrative expenses. True False Question 6 (10 points) Saved In the absorption costing income statement, cost of goods manufactured equals $ Question 7 (10 points) The reported income from operations is the same under absorption and variable costing and will be the same in all circumstances. Question 8 (10 points) Gross Profit is computed and reported in the absorption costing income statement. True False Question 9 (10 points) In the variable costing income statement, the income from operations is $ Question 10 (10 points) Saved In the absorption costing income statement, the cost of goods sold is $