Problem 1: Absorption and variable costing income statements

During the first month of operations ended July 31, YoSan Inc. manufactured 11,900 flat-panel televisions, of which 11,200 were sold. Operating data for the month are summarized as follows:

Sales		$1,904,000
Manufacturing costs:
Direct materials	$952,000
Direct labor	285,600
Variable manufacturing cost	238,000
Fixed manufacturing cost	119,000	1,594,600
Selling and administrative expenses:
Variable	$156,800
Fixed	72,100	228,900

Required:

Instructions

Prepare an income statement based on the absorption costing concept.

Prepare an income statement based on the variable costing concept.