Absorption and Variable Costing Income Statements

During the first month of operations ended July 31, YoSan Inc. manufactured 9,700 flat panel televisions, of which 8,900 were sold. Operating data for the month are summarized as follows:

Sales $1,068,000 Manufacturing costs: Direct materials $543,200 Direct labor 164,900 Variable manufacturing cost 135,800 Fixed manufacturing cost 67,900 911,800 Selling and administrative expenses: Variable $89,000 Fixed 40,900 129,900 Required: 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 1,068,000 Cost of goods sold: Cost of goods manufactured 911,800 Inventory, July 31 Total cost of goods sold Gross profit Selling and administrative expenses Income from operations 2. Prepare an income statement based on the variable costing concept. YoSan Inc Variable Costing Income Statement For the Month Ended July 31 Sales Variable cost of goods sold: Variable cost of goods manufactured v Inventory, July 31 Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs v Income from operations