b Selling and administrative expenses irding to the variable costing concept. Variable factory overhead Gallatin County Motors Inc. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, whien inventory increases, the income statement will have a higher operating income. b. Prepare an income statement according to the variable costing concept. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the method, the foxed manufacturing cost included in the cost of goods sold is matched with the revenues. Under , all of the fixed manufacturing cost is deducted in the period in which it is incurred, repardiess of the amount of inventory change. Thus, when inzantory increases, the income statement will bave a higher opecating income. Income Statements under Absorption Costing and Varisble Costing Gallatin County Motors Inc, assembles and sells snowmobile engines. The company began operations on July 1 and operated at-100\% of capacity during the first month. The following data sumamarize the results for July: If required. round interim pecourit calculatiors to the bearest cent: a. Presare in income statement according to the abscrption costing concept. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 b. Prepare an income statement according to the variable costing concept. a. Prepare an income statement according to the absorption costing concept. b. Prepare an income statement according to the variable costing concept. b. Prepare an income statement according to the variable costing concept. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the method, the fixed manufacturing cost inchuded in the cost of goods sold is matched with the revenues. Under i, all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the income statement will have a hipher operating income. b. Prepare an income statement according to the variable costing concept. c. Whi Total fixed costs Under the difference in the ampunt of operating income reported in (a) and (b)? method, the flxed manufacturing cost included in the cost of goods sold is matched with that revenues. Under i, all of the foced, manufacturing cost is deducted in the poriod in which it is incurred, regardless of the amount of inventory income statement will have a higher operatino income. change. Thus, when inventory increases, the Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under T. all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the Income statement will have a higher operating income. b. Prepare an income statement according to the variable costing concept. c. What is the reason for the difference in the amount of operating inconse reported in (a) and (b)? Under the method, the foxed manufacturing cost included in the cost of goods sold is matched with the revenues. Under , all of the foxed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the incorre statement will have a higher operating income. b. Prepare an income statement according to the variable costing concept. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under wall of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when Inventory increases, the income statement will have a higher operating income. a. Prepare an income statement according to the absorption costing concept. b. Loss from operations statement according to the variable costing concept. b. Prepare an income statement according to the variable costing concept. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under all of the foced manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventor change. Thus, when inventory increases, the income statement will have a higher operating income. Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under , all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the income statement will have a higher operating income