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: Line Item Description Amount Amount Sales $1,592,500 Manufacturing costs: Direct materials $795,400 Direct labor 242,500 Variable manufacturing cost 203,700 Fixed manufacturing cost 106,700 1,348,300 Selling and administrative expenses: Variable $127,400 Fixed 58,600 186,000 Required: Question Content Area 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Line Item Description Amount Amount Sales $Sales 1,592,500 Cost of goods sold: Cost of goods manufactured $Cost of goods manufactured 1,348,300 Inventory, July 31 Inventory, July 31 111,200 Total cost of goods sold Total cost of goods sold Gross profit $Gross profit Selling and administrative expenses Selling and administrative expenses 186,000 Operating income $Operating income Feedback Area Feedback 1. Sales - (cost of goods manufactured - ending inventory*) = Gross profit; gross profit - selling and administrative expenses = operating income *(Manufactured Units - Sold units) x (total manufacturing costs/manufactured units) Question Content Area 2. Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement For the Month Ended July 31 Line Item Description Amount Amount Sales $Sales Variable cost of goods sold: Variable cost of goods manufactured $Variable cost of goods manufactured Inventory, July 31 Inventory, July 31 Total variable cost of goods sold Total variable cost of goods sold Manufacturing margin $Manufacturing margin Variable selling and administrative expenses Variable selling and administrative expenses Contribution margin $Contribution margin Fixed costs: Fixed manufacturing costs $Fixed manufacturing costs Fixed selling and administrative expenses Fixed selling and administrative expenses blank Total fixed costs blank Total fixed costs Operating income $Operating income

Prepare an income statement based on the variable costina conceot. Absorption and Variable Costing Income Statements 1. Prepare an income statement based on the absorption costing concept