Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began opera on July 1 and operated at 100% of capacity during the first month. The following data summariz results for July: Sales (14,500 units) Production costs (19,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $1,740,000 $843,600 404,700 203,300 134,900 1,586,500 $245,900 95,200 341,100 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. Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses O Sales Cost of goods sold 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 Gross profit Selling and administrative expenses 134,900 1,586,500 Operating income $245,900 95,200 1,740,000 1,210,750 529,250 341,100 341,100 188,150 Sales Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses Total fixed costs Operating income 134,900 95,200 1,740,000 1,697,500 X 245,900 230,100