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: Required: Instructions 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. Show your calculations for the ending inventory number