Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 8,800 flat panel televisions, of which 8,300 were sold. Operating data for the month are summarized as follows Sales $1,452,500 Manufacturing costs: $721,600 Direct materials Direct labor 220,000 Variable manufacturing 184,800 cost Fixed manufacturing cost 96,800 1,223,200 Selling and administrativee expenses: $116,200 Variable Fixed 53,500 169,700 Required: 1. Prepare an income statement based on the absorption costing concept YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 1,452,500 Cost of goods sold Loss from operations 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