Absorption and Variable Costing Income Statements

During the first month of operations ended July $31,$ YoSan Inc. manufactured $12,400$ flat panel televisions, of which $11,400$ were sold. Operating data for the month are summarized as follows:

Sales $$1,653,000$

Manufacturing costs:

Direct materials $$843,200$

Direct labor $248,000$

Variable manufacturing cost $210,800$

Fixed manufacturing cost $111,6001,413,600$

Selling and administrative expenses:

Variable $$136,800$

Fixed $62,900199,700$

Required:

Question Content Area

$1.$ Prepare an income statement based on the absorption costing concept.

YoSan Inc.

Absorption Costing Income Statement

For the Month Ended July $312.$ Prepare an income statement based on the variable costing concept.

YoSan Inc.

Variable Costing Income Statement

For the Month Ended July $31$