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 (9,000 units) $1,350,000

Production costs (12,000 units):

Direct materials $666,000

Direct labor 319,200

Variable factory overhead 159,600

Fixed factory overhead 106,800 1,251,600

Selling and administrative expenses:

Variable selling and administrative expenses $194,000

Fixed selling and administrative expenses 75,100 269,100

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

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

Sales : 1,350,000

Cost of goods sold: ?

Gross Profit: ?

Selling and administrative expenses: ?

Operating Income: ?