PR 21-1B 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 elevisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Sales .... . .... $2,150,000 Manufacturing costs: Direct materials . . . ... $960,000 Direct labor . ....... 420,000 Variable manufacturing cost 156,000 Fixed manufacturing cost . .. . . . . . . .. 288,000 1,824,000 Selling and administrative expenses: Variable . . . ... $204,000 Fixed . .. . . . 96,000 300,000Instructions 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. 3. - Explain the reason for the difference in the amount of operating income reported in {1) and (2)