Please Help!

ACC 202

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 (13,500 units) Production costs (17,000 units): Direct materials $629,000 $1,350,000 Direct labor 302,600 151,300 100,300 1,183,200 Variable factory overhead Forced factory overhead Selling and administrative expenses Variable selling and administrative expenses Fixed selling and administrative expenses $183,400 71,000 254,400 If required, round Interim per-unit calculations to the nearest cent. 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 expenses Operating income Feedback 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 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses Total fixed costs Operating income Feedback