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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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During the first month of operations ended July 31, 2016, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are sum- marized as follows:
Sales  .................................................................                      $2,150,000
Manufacturing costs:
Direct materials .....................................................         $960,000
Direct labor  ........................................................          420,000
Variable manufacturing cost  ........................................   156,000
Fixed manufacturing cost ...........................................  288,000                    1,824,000
Selling and administrative expenses:
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Â
|
Variable   ............................................................ |
$204,000 |
 |
|
Fixed ............................................................... |
    96,000 |
300,000 |
Instructions
3.    Prepare an income statement based on the absorption costing concept.
4.    Prepare an income statement based on the variable costing concept.
5.   Â
Explain the reason for the difference in the amount of income from opera- tions reported in (1) and (2).
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