Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 8,600 flat panel televisions, of which 7,900 were sold. Operating data for the month are summarized as follows: Sales $1,066,500 Manufacturing costs: Direct materials $541,800 Direct labor 163,400 Variable manufacturing cost 137,600 Fixed manufacturing cost 68,800 911,600 Selling and administrative expenses: Variable $86,900 Fixed 40,000 126,900 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: 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: 1 Fixed costs: 3. The income from operations reported under 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 casting