Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yo San Inc, manufactured 12,400 flat panel televisions, of which 11,400 were sold Operating data for the month we summarized as follows: Sales $1,425,000 Manufacturing costs: Direct materials $731,600 Direct labor 223,200 Variable manufacturing cost 186.000 Forced manufacturing cost 99 200 1.240.000 Selling and administrative expenses Variable $114.000 Fhead 52.400 166,400 Required: 1. Prepare an income statement based on the absorption conting concept Yosan Inc Nbsorption Costing Inco m ent For the thinded Muy 31 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: Fbced costs: 3. Explain the reason for the difference in the amount of income from operations reported in 1) and 2 The income from operations reported under costing exceeds the income from operations reported under that are deferred to a future month under costing by the difference between the two