Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yosan Inc, manufactured 11,700 flat panel televisions, of which 10,800 were sold. Operating data for the month are summarired as follows: Sales $1,890,000 Manufacturing costs: Direct materials $959.400 Direct labor 292.500 Variable manufacturing cost 245,700 Faced manufacturing cost 128.700 1,626,300 Selling and administrative expenses Variable $151,200 Fixed 69,600 220,800 Required: 1. Prepare an income statement based on the absorption costing concept. Yosan Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 1.090.000 Cost of goods sold: Cost of goods manufactured 1626.300 Inventory, July 31 Total cost of goods sold Gross profit Selling and administrative expenses 20 400 4 Operating income - Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement For the Month Ended July 31 Sales 1.890.000 Variable cost of goods sold: Variable cost of goods manufactured Inventory, July 31 Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income