During the first month of operations ended July 31, YoSan Inc. manufactured 11,100 flat panel televisions, of which 10,400 were sold. Operating data for the month are summarized as follows:

Sales		$1,820,000
Manufacturing costs:
Direct materials	$910,200
Direct labor	277,500
Variable manufacturing cost	233,100
Fixed manufacturing cost	122,100	1,542,900
Selling and administrative expenses:
Variable	$145,600
Fixed	67,000	212,600

Required:

Question Content Area

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

		$Sales
Cost of goods sold:

	$Cost of goods manufactured

	Inventory, July 31

		Total cost of goods sold

		$Gross profit

		Selling and administrative expenses

$Operating income

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