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) $2,240,000 Production costs (21,000 units): Direct materials $1,087,800 Direct labor 522,900 Variable factory overhead 260,400 Fixed factory overhead 174,300 2,045,400 Selling and administrative expenses: Variable selling and administrative expenses $317,000 Fixed selling and administrative expenses 122,700 439,700 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 clini Selling and administrative expenses Operating income Feedback