> Income Statements under Absorption Costing and Variable 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: Sales (19,500 units) Production costs (25,000 units): Direct materials Direct labor Variable factory overhead $1,017,500 487,500 245,000 $2,145,000 Fixed factory overhead 162,500 1,912,500 Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $296,400 114,800 411,200 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 Cost of goods sold Check My Work 2,145,000 1,750,000 X Next