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Absomtion and variable costing Income Statements During the first month of operations ended July 31, Yosan Inc, manufactured 10,000 flat pane televisions. of which 9,200 were sold. Operating data for the month are summatized as followst 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. 3. explain che reason ror the qurrerence 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