Absorption and Variable Costing Income statements. During the first month of operations ended July 31, Yo5an inc. manufactured 9,700 fat panel televisions, of which 8,900 were sold, Operating data for the month are summarised as follows 1. Prepare an income statement baced on the absorption costing concept. 1. Prepare an income statement based on the absorption costing concept. Feedback Check My Work 1. Sales - (cost of goods manufactured - ending inventory*) = Gross profit, *(Manufactured Units - Sold units) x (total manufacturing costs/manufactur 2. Prepare an income statement based on the variable costing concept. YoSan Inc