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Please help A and B question Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at
Please help A and B question
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 (13,000 units) $1,820,000 Production costs (17,000 units): Direct materials $880,600 Direct labor 423,300 Variable factory overhead 210,800 Fixed factory overhead 141,100 1,655,800 Selling and administrative expenses: Variable selling and administrative expenses $256,600 Fixed selling and administrative expenses 99,300 355,900 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 Selling and administrative exper V Operating income * Vb. 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 Variable cost of goods so * Manufacturing margir Variable selling and administrative exp * V Contribution margin - v Fixed costs: Fixed factory overhead co: V Fixed selling and administrative expe V Total fixed costs Operating income * VStep by Step Solution
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