00 Module 6 30 GO Show Me How Income Statements under Absoryban Costing and Variable Casting Gallatin County Motors Inc. assemblies and sets snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July Sales (16,000 units) Production costs (21,000 units) Direct materials Direct labor $1,600,000 $777,000 373,800 180,000 123,900 1,461,600 Vanable factory overhead Fixed factory overhead Seiling and administrative expenses Variable selling and administrative expenses $226,500 Foxed setting and administrative expenses 17,300 314,200 If required, round interim per-unit calculations to the nearest c a. Prepare an income statement according to the absorption costing concept Sales Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Cost of goods sold Gross profit Selling and administrative expenses Operating income tule 6 Sest of goods sold Gross graft Selling and administrative expenses Operating income 0000 a. Under absorption costing, the cost of goods manufactured indudes direct materials, direct and factory overhead costs that costs are included as part of factory overhead. b. Prepare an income statement according to the variable costing concept Sales Gallatin County Haters Inc. Variable Costing Income Statement For the Hanth ended July 31 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed factory everhead costs Fixed selling and administrative expenses Operating income Check My Work 00000 00 Pred fiest