Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc, manufactured 12,300 flat panel televisions, of which 11,600 were sold. Operating data for the month are summarized as follows: $1,972,000 Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable $984,000 295,200 246,000 123,000 1,648,200 $ 162,400 74,700 Fixed 237,100 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: E 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: IJU Fixed costs: 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 operating income reported in (1) and (2). The operating income reported under costing, due to costing. costing exceeds the operating income reported under manufacturing costs that are deferred to a future month under