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Income Statements under Absorption Costing 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 (11,000 units)				$1,540,000
Production costs (14,000 units):
Direct materials		$725,200
Direct labor		348,600
Variable factory overhead		173,600
Fixed factory overhead		116,200		1,363,600
Selling and administrative expenses:
Variable selling and administrative expenses		$211,400
Fixed selling and administrative expenses		81,800		293,200

If required, round interim per-unit calculations to the nearest cent.