Absorption and Variable Costing Income Statements

Sales

$$1,066,500$

Manufacturing costs:

Direct materials

Direct labor

Variable manufacturing cost

Fixed manufacturing cost

$901,000$

Selling and administrative expenses:

Variable

Fixed

Required:

Prepare an income statement based on the absorption costing concept.

YoSan Inc.

Absorption Costing Income Statement

For the Month Ended July $31$

Line Item Description Amount Amount

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 $31$

Line Item Description Amount Amount

Variable cost of goods sold: