Income Statements under Absorption Costing and anabe Costing Gallan County Motors inc assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the best month. The following data summarize the results for July Sales (4,000 units $2,600,000 Production costs (4.350 units): Direct materials $1,218,000 Duct labor 522.000 Variable factory overhead 87,000 Fed factory overhead 130,500 1,957,500 Selling and administrative expenses Variable selling and administrative expenses 560,000 Found selling and administrative expenses 25,000 85,000 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 Cost of goods sold Gross profit Selling and administrative expenses baini Operating income