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: $1,284,000 Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable $638,400 193,800 159,600 79,800 1,071,600 $107,000 49,200 Fixed 156,200 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: ILLU 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 operating income reported in (1) and (2). The operating income reported under costing exceeds the operating income reported under manufacturing costs that are deferred to a future month unde costing. absorption variable costing, due to