Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc, manufactured 8,500 flat panel televisions, of which 7.800 were sold. Operating data for the month are summarized as follows: Sales $975,000 Manufacturing costs: Direct materials $501,500 Direct labor 153,000 Variable manufacturing cost 127,500 Fixed manufacturing cost 68,000 850,000 Selling and administrative expenses: Variable $78,000 Fixed 35,900 113,900 Required: 1. Prepare an income statement based on the absorption costing concept. 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: Fbxed costs: 3. 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