Absorption and Variable Costing Income Statements During the first month of operations ended July 31, Yo San Inc. manufactured 10,500 flat panel televisions, of which 9,900 were sold. Operating data for the month are summarized as follows: Sales $1,633,500 Manufacturing costs: Direct materials $819,000 Direct labor 241,500 Variable manufacturing cost 210,000 Fixed manufacturing cost 105,000 1,375,500 Selling and administrative expenses: Variable $128,700 Fixed 59,200 187,900 Required: oncept. 1. Prepare an income statement based on the absorption costir 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 income from operations reported in (1) and (2). The income from operations reported under costing exceeds the income from operations reported under costing by the difference between the two, due to manufacturing costs that are deferred to a future month under costing