1. During the first month of operations ended July 31, YoSan Inc. manufactured 11,400 flat panel televisions, of which 10,700 were sold. Operating data for the month are summarized as follows:

   Sales		$1,337,500
   Manufacturing costs:
   Direct materials	$672,600
   Direct labor	205,200
   Variable manufacturing cost	171,000
   Fixed manufacturing cost	91,200	1,140,000
   Selling and administrative expenses:
   Variable	$107,000
   Fixed	49,200	156,200

   Required:

   1. Prepare an income statement based on the absorption costing concept.

   YoSan Inc.
   Absorption Costing Income Statement
   For the Month Ended July 31
   		$fill in the blank 462c49083020fd4_2
   Cost of goods sold:
   	$fill in the blank 462c49083020fd4_4
   	fill in the blank 462c49083020fd4_6
   		fill in the blank 462c49083020fd4_8
   		$fill in the blank 462c49083020fd4_10
   		fill in the blank 462c49083020fd4_12
   		$fill in the blank 462c49083020fd4_14

   2. Prepare an income statement based on the variable costing concept.

   YoSan Inc.
   Variable Costing Income Statement
   For the Month Ended July 31
   		$fill in the blank 1ceccd05e05505a_2
   Variable cost of goods sold:
   	$fill in the blank 1ceccd05e05505a_4
   	fill in the blank 1ceccd05e05505a_6
   		fill in the blank 1ceccd05e05505a_8
   		$fill in the blank 1ceccd05e05505a_10
   		fill in the blank 1ceccd05e05505a_12
   		$fill in the blank 1ceccd05e05505a_14
   Fixed costs:
   	$fill in the blank 1ceccd05e05505a_16
   	fill in the blank 1ceccd05e05505a_18
   		fill in the blank 1ceccd05e05505a_20
   		$fill in the blank 1ceccd05e05505a_22

   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 deferred to a future month under costing.