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 Sales (19,500 units) $1,950,000 Production costs (25,000 units): Direct materials $925,000 Direct labor 445,000 Variable factory overhead 222,500 Fixed factory overhead 147,500 1,740,000 Selling and administrative expenses: Variable selling and administrative expenses $269,700 Fixed selling and administrative expenses 104,400 374,100 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 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:Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (3,700 units) $96,200 Cost of goods sold: Cost of goods manufactured (4,300 units) $77,400 Inventory, April 30 (600 units) (10,800) Total cost of goods sold (66,600) Gross profit $29,600 Selling and administrative expenses (16,720) Operating income $12,880 If the fixed manufacturing costs were $17,802 and the fixed selling and administrative expenses were $8,190, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the Month Ended April 30 Variable cost of goods sold: Fixed costs