Gallat$$n County Motors Inc. b$.$ Prepare an income statement according to the variable costing concept.

Gallat$$n County Motors Inc.

Variable Costing Income Statement

For the Month Ended July $31$

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h$.$ Under variable costing the cost of aoods manufactured includes onlv variable manufacturina costs. 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:

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

a$.$ Prepare an income statement according to the absorption costing concept.

Gallation County Motors Inc.

Absorption Costing Income Statement

For the Month Ended July $31$ Gallat$$n County Motors Inc.

Absorption Costing Income Statement

For the Month Ended July $31$

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T Check My Work

a$.$ Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and

variable factory costs are included as part of factory overhead.

b$.$ Prepare an income statement according to the variable costing concept.

Gallat$$n County Motors Inc.

Variable Costing Income Statement

For the Month Ended July $31$ b$.$ Prepare an income statement according to the variable costing concept.

Gallat$$n County Motors Inc.

Variable Costing Income Statement

For the Month Ended July $31$

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$7$ Check My Work

h$.$ Under variable costing the cost of aoods manufactured includes onlv variable manufacturina costs.

Absorption Costing Income Statement

For the Month Ended July $31$

Feedback

T Check My Work

a$.$ Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and

variable factory costs are included as part of factory overhead.

b$.$ Prepare an income statement according to the variable costing concept.

Gallat$$n County Motors Inc.

Variable Costing Income Statement

For the Month Ended July $31$