Absorption and Variable Costing Income Statements

During the first month of operations ended July 31, YoSan Inc. manufactured 10,200 flat panel televisions, of which 9,500 were sold. Operating data for the month are summarized as follows:

Sales		$1,377,500
Manufacturing costs:
Direct materials	$693,600
Direct labor	204,000
Variable manufacturing cost	173,400
Fixed manufacturing cost	91,800	1,162,800
Selling and administrative expenses:
Variable	$114,000
Fixed	52,400	166,400

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:
	$
		$

3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).

The income from operations reported under costing exceeds the income from operations reported under costing by the difference between the two, due to manufacturing costs that are deferred to a future month under costing.

please show all steps to each answer