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OPR 20-1B Absorption and variable costing income statements Obj. 1, 2 During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: SHOW ME HOW $2,150,000 + Sales Manufacturing costs: Direct materials. Direct labor Variable manufacturing cost Fixed manufacturing cost. Selling and administrative expenses: Variable Fixed $960,000 420,000 156,000 288,000 1,824,000 $204,000 96,000 300,000 Instructions 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. Answer Explain the reason for the difference in the amount of income from operations reported in (1) 3. and (2) Question 1 (10 points) In the variable costing income statement, the variable cost of goods sold is $ Question 2 (10 points) Saved In the absorption costing income statement, the total number of units manufactured and total number of units sold are equal. True False Question 3 (10 points) In the variable costing income statement, the manufacturing margin is $ Question 4 (10 points) The income from operations reported in the absorption costing income statement is $ Question 5 (10 points) The selling and administrative expenses reported in the absorption costing income statement includes only variable selling and administrative expenses. True False Question 6 (10 points) In the absorption costing income statement, cost of goods manufactured equals $ Question 7 (10 points) The reported income from operations is the same under absorption and variable costing and will be the same in all circumstances. True False Question 8 (10 points) Gross Profit is computed and reported in the absorption costing income statement. True False Question 9 (10 points) In the variable costing income statement, the income from operations is $ Question 10 (10 points) In the absorption costing income statement, the cost of goods sold is $