During the first month of operations ended July 31, YoSan Inc. manufactured 9,300 flat panel televisions, of which 8,600 were sold. Operating data for the month are summarized as follows:

Sales		$1,419,000
Manufacturing costs:
Direct materials	$725,400
Direct labor	213,900
Variable manufacturing cost	186,000
Fixed manufacturing cost	93,000	1,218,300
Selling and administrative expenses:
Variable	$111,800
Fixed	51,400	163,200

Required:

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

Cost of goods sold:

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

Variable cost of goods sold:
Variable cost of goods manufactured
Inventory 31 July
Total variable cost of good sold
Manufacturing margin
Variable selling and administrative expenses
Contribution Margin
Fixed costs:
Fixed manufacturing costs
Fixed selling administrative expenses
Total fixed costs
Income or Loss

3. The income from operations reported under

absorption/variable

costing exceeds the income from operations reported under

absorption/variable

costing by the difference between the two, due to

fixed/variable

manufacturing costs that are deferred to a future month under

absorption/variable

costing.