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: $2,800,000 Sales (20,000 units) Production costs (26,000 units): $1,346,800 Direct materials Direct labor Variable factory overhead 647,400 322,400 Fixed factory overhead 215,800 2.532,400 Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $392,500 151,900 544,400 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 2.800,000 Cost of goods sold uion costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 2,800,000 Cost of goods sold Gross profit Selling and administrative expenses 392.500 X Operating income Feedback Check My Work a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory over Both fixed and variable factory costs are included as part of factory overhead. b. Prepare an income statement according to the variable costino concept. Previo Check My Work