Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yosan Inc. manufactured 10,800 flat panel televisions, of which 10,000 were sold. Operating data for the month are summarized as follows: Sales $1,750,000 Manufacturing costs: Direct materials $885,600 Direct labor Variable manufacturing cost Fixed manufacturing cost 270,000 226,800 118,800 1,501,200 Selling and administrative expenses: Variable $140,000 Fixed 64,400 204,400 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: 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: