During the first month of operations ended July 31, YoSan Inc. manufactured 9,700 flat panel televisions, of which 8,900 were sold. Operating data for the month are summarized as follows: 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2). The operating income reported under costing exceeds the operating income reported under costing, due to manufacturing costs that are