Reference no: EM132314929

Question

During the first month of operations ended July 31, YoSan Inc. manufactured 9,700 flat panel televisions, of which 9,100 were sold. Operating data for the month are summarized as follows:

5 4 5 6 7 8 9	Sales		$2,150,000.00
	Manufacturing costs:
	Direct materials Direct labor	$960,000.00
		420,000.00
	Variable manufacturing cost	156,000.00
	Fixed manufacturing cost	288,000.00	1.824.000.00
	Selling and administrative expenses:
	Variable	$204,000.00
	Fixed	96,000.00	300,000.00

Required:

1.  Income statement based on the absorption costing concept.

YoSan Inc.Absorption Costing Income StatementFor the Month Ended July 31

$Cost of goods sold:

$

$

2.  Income statement based on the variable costing concept.

YoSan Inc.Variable Costing Income StatementFor the Month Ended July 31

$Variable cost of goods sold:

$

$

$Fixed costs:

$

$

3. The income from operations reported under costing exceeds the income from operations reported under costing by the difference between the two, due to manufacturing costs that are deferred to a future month under costing.