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: $1,855,000 Sales (3,500 units) Production costs (4,000 units): Direct materials $911,600 Direct labor 392,000 64,000 Variable factory overhead Fixed factory overhead 100,400 1,468,000 Selling and administrative expenses: Variable selling and administrative expenses $45,500 Fixed selling and administrative expenses 19,100 64,600 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. $ 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 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 $ $ $ Fixed costs: VI $