1. PR.20-01B ALGO (Algorithmic) Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 11,100 flat panel televisions, of which 10,300 were sold. Operating data for the month are summarized as follows: $1,802,500 Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $910,200 277,500 233,100 122,100 1,542,900 $144,200 66,300 210,500 Required: CT 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 E Cost of goods sold: 1 TL epare an income statement based on th able costing concept. YoSan Inc. Variable Costing Income Statement For the Month Ended July 31 Variable cost of goods sold: 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 income from operations reported in (1) and (2) 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2). The income from operations reported under Y costing exceeds the income from operations reported under costing by the difference between the two, due to manufacturing costs that are deferred to a future month under costing. M