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Absorption and Variable Costing Income Statements During the first month of operations ended July 31 , YoSan Inc. manufactured 11,400 flat panel televisions, of which 10,500 were sold. Operating data for the month are summarized as follows: 1. Prepare an income statement based on the absorption costino concept. 2. Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2). The operatino income reported under costing exceeds the operatino income reported under costing, due to manufacturing costs that are deferred to a future month under costing