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 (16,000 units) Production costs (21,000 units): Direct materials Direct labor Variable factory overhead $2,560,000 $1,243,200 596,400 298,200 199,500 2,337,300 Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses $362,300 Fixed selling and administrative expenses 140,200 502,500 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 Feedback Chack My Work 2,560,000 x x X