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 (17,000 units)				$2,210,000
Production costs (22,000 units):
Direct materials		$1,058,200
Direct labor		508,200
Variable factory overhead		253,000
Fixed factory overhead		169,400		1,988,800
Selling and administrative expenses:
Variable selling and administrative expenses		$308,300
Fixed selling and administrative expenses		119,300		427,600

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

Question Content Area

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

?______	$____
?_______	____
?______	$___
? ____________________	_____
?_____________________________	$________

Question Content Area

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

Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31

?____________		$___
?_____________		___
?____________		$___
?______________		___
?___________		$___
Fixed costs:
?_______	$__
?______________	_______
?_______________		__________
?________________		$_____