Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 12,100 flat panel televisions, of which 11,400 were sold. Operating data for the month are summarized as follows: Sales Manufacturing costs $1,425,000 Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost $713,900 217,800 181,500 96,800 1,210,000 Selling and administrative expenses: Variable $114,000 Fixed 52,400 166,400 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 Absorption Costing Income Statement For the Month Ended July 31 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 Variable cost of goods sold 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 income from operations reported in (1) and (2) The income from operations reported under the difference between the two, due to costing exceeds the income from operations reported under manufacturing costs that are deferred to a future month under costing