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 $7.750,000.00 + Sales (51.000 units) 2 Production costs (38.000 units); 5 Direct materials Direct labor 5 Variable factory overhead 6 Fixed factory overhead 7 Selling and administrative expenses: Variable selling and administrative expenses $3,040,000.00 1.710.000.00 950,000.00 570,000.00 6.270.000.00 31.120.000.00 200.000,00 Fixed selling and administrative expenses 1.320,000.00 Required: a. Prepare an income statement according to the absorption costing concept b. Prepare an income statement according to the variable costing concept What is the reason for the difference in the amount of Operating income reported in (a) and Labels Fixed costs For the Month Ended July 31 July 31 Amount Descriptions Contribution margin Contribution margin ratio Cost of goods sold Fixed factory overhead costs Fixed selling and administrative expenses Gross profit Operating income Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Total fixed costs Variable cost of goods sold Variable selling and administrative expenses Absorption Costing Income Statement Shaded cells have feedba a. Prepare an income statement according to the absorption costing concept. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Netloss should be negative. Expenses should be positive. Gallatin County Motors Inc Score: 25/43 Absorption Costing Income Statement For the Month Ended July 31 Sales Cost of goods sold Gross profit + Selling and administrative expenses 5 Operating income b. Prepare an income statement according to the variable costing concept. Be sure to complete the statement heading. Refer to the list of Label and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example Netloss should be negative. Expenses should be positive Galatin County Motors Inc. Score: 51/84 Variable Costing Income Statement For the Month Ended July 31 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fored costs: Fired factory overhead costs 1 Fixed selling and administrative expenses Total fixed costs 10 Operating income Previous