Income Statements under Absorption Conting and Variable Corting 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 $1,625.000 Sales (12,500 units) Production costs (16,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable seling and administrative expenses Fored selling and administrative expenses $769,600 369,600 134.000 123,200 1,446,400 $224.200 86.800 311.000 If required, round interim per-unit calculations to the nearest cent. - 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 Cost of goods sold Gross profit Selling and administrative expenses Operating Income 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 Fed costs: po