Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 12,500 flat panel televisions, of which 11,800 were sold. Operating data for the month are summarized as follows: Sales $2.124,000 Manufacturing costs: Direct materials $1,062,500 Direct labor 312,500 Variable manufacturing cost 275,000 Fixed manufacturing cost 137,500 1,787,500 Selling and administrative expenses: Variable $165.200 Fixed 76,000 241,200 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 2.124.000 Cost of goods sold: Cost of goods manufactured 1.062.500 X Inventory, July 31 Yosan Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 2.124,000 Cost of goods sold: Cost of goods manufactured 1,787.500 Inventory, July 31 Total cost of goods sold Gross profit Selling and administrative expenses Operating income Feedback 2. Prepare an income statement based on the variable costing concept YoSan Inc. Variable Costing Income Statement For the Month Ended July 31 Sales 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 Sales 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