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): $3,120,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead $1,480,000 710,000 355,000 237,500 2,782,500 Selling and administrative expenses: Variable selling and administrative expenses $431,300 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 Cost of goods sold Gross profit Selling and administrative expenses Operating income