Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 12,000 flat panel televisions, of which 11,200 were sold. Operating data for the month are summarized as follows: Sales Manufacturing costs $1,512,000 Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost $756,000 228,000 192,000 96,000 1,272,000 Selling and administrative expenses: Variable $123,200 Fixed 56,700 179,900 Required: 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Cost of goods sold YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Cost of goods sold: 2. Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement For the Month Ended July 31 Variable cost of goods sold: 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 the amount of income from operations reported in (1) and (2) The income from operations reported under difference between the two, due to costing exceeds the income from operations reported under costing by the manufacturing costs that are deferred to a future month under costing