During the first month of operations ended July 31, YoSan Inc. manufactured 9,700 flat panel televisions, of which 9,100 were sold. Operating data for the month are summarized as follows:

Sales$1,456,000Manufacturing costs:     Direct materials$727,500    Direct labor213,400    Variable manufacturing cost184,300    Fixed manufacturing cost97,0001,222,200Selling and administrative expenses:     Variable$118,300   Fixed54,400172,700

Required:

1.  income statement based on the absorption costing concept. 

YoSan Inc.Absorption Costing Income StatementFor the Month Ended July 31

$Cost of goods sold:

$

$

2.  income statement based on the variable costing concept. 

YoSan Inc.Variable Costing Income StatementFor the Month Ended July 31

$Variable cost of goods sold:

$

$

$Fixed costs:

$

$

3. 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.