Income Statements under Absorption Costing and Vanable Costing 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 $3,120,000 Sales (19,500 units) Production costs (25,000 units): Direct materials $1,480,000 710,000 355,000 237,500 2,782,500 Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses Variable selling and administrative expenses Fixed selling and administrative expenses $431,300 167,000 598,300 If required, round interim per unit calculations to the nearest ont 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 1.120.000 Cost of goods sold 2.170,350 Previous N Fixed selling and administrative expenses 167,000 598,300 If required, round interim per-unit calculations to the nearest cent. 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 3,120,000 Cost of goods sold 2,170,350 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 Sales 3,120,000 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin ni dill Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses Total fixed costs Operating income