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 (4,000 units)				$2,600,000
Production costs (4,350 units):
Direct materials		$1,218,000
Direct labor		522,000
Variable factory overhead		87,000
Fixed factory overhead		130,500		1,957,500
Selling and administrative expenses:
Variable selling and administrative expenses		$60,000
Fixed selling and administrative expenses		25,000		85,000

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

• Cost of goods sold
• Direct labor
• Direct materials
• Fixed factory overhead costs
• Sales

Gallatin County Motors Inc.
Absorption Costing Income Statement
For the Month Ended July 31
Fixed factory overhead costs	$fill in the blank abd9fff7704706c_2
Cost of goods sold	fill in the blank abd9fff7704706c_4
Cost of goods sold	$fill in the blank abd9fff7704706c_6
Selling and administrative expenses	fill in the blank abd9fff7704706c_8
Operating income	$fill in the blank abd9fff7704706c_10