Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the Sales (18,500 units) $1,665,000 Production costs (24,000 units): Direct materials $799,200 Direct labor 384,000 Variable factory overhead 192,000 Fixed factory overhead 127,200 1,502,400 Selling and administrative expenses: Variable selling and administrative expenses $232,900 Fixed selling and administrative expenses 90, 100 323,000 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales $ 1,665,000 Cost of goods sold 1,158,100 Gross profit 506,900 Selling and administrative expenses 323,000 Operating income 183,900 Feedback 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 fact Check My Work