Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 12,200 flat panel televisions, of which 11,500 were sold. Operating data for the month are summarized as follows: $1,897,500 Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $951,600 280,600 244,000 122,000 1,598,200 $149,500 68,800 218,300 Required: 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales Cost of goods sold: Cost of goods manufactured Inventory, July 31 Total cost of goods sold Gross profit Variable selling and administrative expenses Income from operations 10. 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 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 Income from operations 3. The income from operations reported under costing exceeds the income from operations reported under manufacturing costs that are deferred to a future month under costing. costing by the difference between the two, due to