Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc, assembles and Jails 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: If required, round interim periunit calculatians to the nesrest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statensent For the Month Ended July 31 a. Prepare an income statement according to the absorption costing concept. b. Prepare an income statement according to the variable costing concept. b. Prepare an income statement according to the variable costing concept c. What is the reason for the d fference in the amount of operating income reported in (a) and (b)? Under the method, the foxed manufacturing cost included in the cost of goods sold is matched with the revenues, Under of the fixed manufacturing cost is deducted in the period in which it is incurred, regardiess of the amount of inventory change. Thus, when inventocy increases, the income statement will hove a higher operoting income