Absorption and Variable Costing Income Statements During the first month of operations ended July 31 , YoSan Inc, manufactured 12,100 fiat panel televisions. of which 11,400 were sold. Operating data for the month are summarized as follows: 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income 2. Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2). The operating income reported under costing exceeds the operating income reported under costing, due to manufacturing costs that are deferred to a future month under costing