Reference no: EM133001295
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:
Sales 2,150,000
Manufacturing cost:
Direct materials 960,000
Direct labor 420,000
Variable manufacturing cost 156,000
Fixed manufacturing cost 288,000 1,824,000
Selling and administrative expense:
Variable 204,000
Fixed 96,000 300,000
Problem 1. Prepare an income statement based on the absorption costing concept.
Problem 2. Prepare an income statement based on the variable costing concept.
Problem 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).
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: During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat. Prepare an income statement based on the absorption costing concept.
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