Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yo San Inc. manufactured 11,700 flat panel televisions, of which 10,800 were sold. Operating data for the month are summarized as follows: Sales $1,350,000 Manufacturing costs: Direct materials $690,300 Direct labor 210,600 Variable manufacturing cost 175,500 Fixed manufacturing cost 93,600 1,170,000 Selling and administrative expenses: Variable $108,000 Fixed 49,700 157,700 Required: 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 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: 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 exceeds the operating income reported under manufacturing costs that are deferred to a future month under costing costing, due to