Income statements under bron and are conting Galatin County Matura Int. memes and well snowmobile engines. The company began operations on July and operated at 100% city during the first month. The towing data summarise the results for Sales (4,500 units 13.375,000 Production cost (5,000 unit: Direct material 613612,500 Direct labor 63.500 Variable factory overhead 113.000 Fixed factory overhead 177,500 2.596,500 Selling and strative Variable and administrative expenses 180,500 Fedeing and administrative per 33,000 This information has been collected in the Moon Online Open the readsheet, perform the required analysis, and input your answers in the question Open pret Prepare an income statement according to the articosting concest. Gallein County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 1 3,375,000 Cost of goods and 2.571,750 X 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 3,375,000 Cost of goods sold 2,578,750 X Gross profit 796,250 X Selling and administrative expenses 114,300 Operating income 681,950 X 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 Sales 3,375,000 2,499,500 x Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin 113,000 X 80,500 $ 875,500 x Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses Total fixed costs $ 177,500 33,800 Total fixed costs 211,300 Operating income 664,200 X Wat is the reason for the Terence in the amount of Operating income reported in (a) and (0) Under the absorption costing method, the feed manufacturing cost included in the cost of goods sold is matched with the revenues. Under variable costing of the fund manufacturing cost deducted in the period in which is incorred, regardless of the amount of invertory change. Thus, when inventory increases the absorption costing income wat we have a higher Operating income the will the variable costing income statement