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During the first month of operations ended July 31, YoSan Inc. manufactured 10,500 flat panel televisions, of which 9,700 were sold. Operating data for the month are summarized as follows:

Sales		$1,358,000
Manufacturing costs:
Direct materials	$693,000
Direct labor	210,000
Variable manufacturing cost	178,500
Fixed manufacturing cost	84,000	1,165,500
Selling and administrative expenses:
Variable	$106,700
Fixed	49,100	155,800

Required:

Question Content Area

1. Prepare an income statement based on the absorption costing concept.

YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31

Contribution marginGross profitInventory, July 31Manufacturing marginSales		$- Select -
Cost of goods sold:
Cost of goods manufacturedFixed manufacturing costsFixed selling and administrative expensesInventory, July 31Total cost of goods sold	$- Select -
Contribution marginCost of goods manufacturedFixed manufacturing costsInventory, July 31Total cost of goods sold	- Select -
Fixed selling and administrative expensesGross profitInventory, July 31Manufacturing marginTotal cost of goods sold		- Select -
Gross profitInventory, July 31Manufacturing marginSalesSelling and administrative expenses		$- Select -
Contribution marginInventory, July 31Selling and administrative expensesTotal cost of goods soldVariable selling and administrative expenses		- Select -
Income from operationsLoss from operations		$- Select -

Question Content Area

2. Prepare an income statement based on the variable costing concept.

YoSan Inc. Variable Costing Income Statement For the Month Ended July 31

Contribution marginDirect laborFixed manufacturing costsInventory, July 31Sales		$- Select -
Variable cost of goods sold:
Cost of goods soldCost of goods manufacturedManufacturing marginVariable cost of goods manufacturedVariable selling and administrative expenses	$- Select -
Contribution marginCost of goods soldFixed manufacturing costsInventory, July 31	- Select -
Fixed manufacturing costsSalesTotal variable cost of goods soldVariable cost of goods manufacturedVariable selling and administrative expenses		- Select -
Contribution marginFixed manufacturing costsGross profitInventory, July 31Manufacturing margin		$- Select -
Fixed manufacturing costsFixed selling and administrative expensesInventory, July 31Manufacturing marginVariable selling and administrative expenses		- Select -
Contribution marginCost of goods manufacturedInventory, July 31Manufacturing marginTotal variable cost of goods sold		$- Select -
Fixed costs:
Fixed contribution marginFixed manufacturing costsFixed salesTotal variable cost of goods soldVariable cost of goods manufactured	$- Select -
Fixed selling and administrative expensesFixed manufacturing marginTotal variable cost of goods soldVariable cost of goods manufacturedVariable selling and administrative expenses	- Select -	blank
Fixed selling and administrative expensesFixed manufacturing marginTotal fixed costsVariable cost of goods manufacturedVariable selling and administrative expenses	blank	- Select -
Income from operationsLoss from operations		$- Select -

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