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% c capacity during the first month. The following data summarize the results for July: Sales (19,000 units) Production costs (25,000 units): Direct materials Direct labor $1,295,000 $2,660,000 Variable factory overhead Fixed factory overhead 622,500 310,000 207,500 2,435,000 Selling and administrative expenses: Variable selling and administrative expenses $377,400 I Fixed selling and administrative expenses 146,100 523,500 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Sales Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Cost of goods sold Gross profit Selling and administrative expenses Anarating income