. Bock Show Me How Income Statements under Absorption Couting and Variable 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 summarize the results for July Sales (12,500 units) $1,625,000 Production costs (16,000 units) Direct materials $769,600 Direct labor 369,600 Variable factory overhead 184,000 Fixed factory overhead 123,200 1,446,400 Selling and administrative expenses Variable selling and administrative expenses 5224,200 Fond selling and administrative expenses 36,800 311,000 It required, round interim per unit calculators to the nearest cent. . Prepare an income statement according to the absorption costing contest Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Check My Wormone Che Workering Previous Next Al W Save and Submit Aer for Grading MacBook Pro . wow.condimenti dominatorprogresse 30 Free comment according to the storie Gallatin County Motors Ene Absorption Costing Income Statement For the Month Ended July GO . -00 Cost of good Director Directors Pued factory overhead costs Sales BLANKSHEETA Galatin County Meters the Variable Costing Income Statement For the Month Ended July = 6 E R G E C B | N M mond Command b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Contribution margin Manufacturing margin Sales Variable cost of goods sold Variable selling and administrative expenses c. What is the reason for the difference in the amount of operating income reported in (a) and()? Under the method, there manufacturing cost cluded in the cost of goods sold is matched with the revenues. Under of the fixed manufacturing out is deducted in the period in which is incurred, regardless of the amount of inventory change. Thus, when inventory increase the income statement will have a higher operating income all Chick My Work 5 more Check My Woman Previous All work saved Save and be submit Algere for Grading