1. During the first month of operations ended July 31, YoSan Inc. manufactured 8,800 flat panel televisions, of which 8,300 were sold. Operating data for the month are summarized as follows:

   Sales		$1,494,000
   Manufacturing costs:
   Direct materials	$748,000
   Direct labor	220,000
   Variable manufacturing cost	193,600
   Fixed manufacturing cost	96,800	1,258,400
   Selling and administrative expenses:
   Variable	$116,200
   Fixed	53,500	169,700

   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.

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