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: If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Feedback Check My Work a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable factory included as part of factory overhead. b. Prepare an income statement according to the variable costing concept. Feedback Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs