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) $1,700,000 Production costs (22,000 units): Direct materials$814,000 Direct labor391,600 Variable factory overhead195,800 Fixed factory overhead129,800 1,531,200 Selling and administrative expenses: Variable selling and administrative expenses$237,300 Fixed selling and administrative expenses91,900 329,200

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.