Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan...

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Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 10,300 flat panel televisions, of which 9,700 were sold. Operating data for the month are summarized as follows: Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $1,746,000 $875,500 257,500 226,600 113,300 1,472,900 $135,800 62,500 198,300 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: 00 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: Fixed costs: 1000 Previous hot Fixed costs: 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 manufacturing costs that are deferred to a future month under costing, due to costing. Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 10,300 flat panel televisions, of which 9,700 were sold. Operating data for the month are summarized as follows: Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $1,746,000 $875,500 257,500 226,600 113,300 1,472,900 $135,800 62,500 198,300 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: 00 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: Fixed costs: 1000 Previous hot Fixed costs: 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 manufacturing costs that are deferred to a future month under costing, due to costing.