During the first month of operations ended July 31, YoSan Inc. manufactured 11,500 flat panel televisions, of which 10,800 were sold. Operating data for the month are summarized as follows: Sales $1,728,000 Manufacturing costs: Direct materials $862,500 Direct labor 253,000 Variable manufacturing cost 218,500 Fixed manufacturing cost 115,000 1,449,000 Selling and administrative expenses: Variable $140,400 Fixed 64,600 205,000 Required: 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: 0001 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: (20) 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 costing, due to manufacturing costs that are deferred to a future month under costing