Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 9,800 flat panel televisions, of which 9,100 were sold. Operating data for the month are summarized as follows: $1,501,500 Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $764,400 225,400 196,000 98,000 1,283,800 $118,300 54,400 172,700 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 Cost of goods sald: Cost of goods manufactured V Inventory July 31 Total cost of goods sold EMV Gross profit Selling and administrative expenses Operating income Feedback Check My Vio 1. Sales (cost of goods manufactured ending inventory) = Gross profit; gross profit - selling and administrative expenses = operating income (Manufactured Units - Sold units) x (total manufacturing costs/manufactured units)