WILL RATE IF CORRECT - ACCOUNTING

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 (5,000 units)				$3,050,000
Production costs (5,000 units):
Direct materials		$1,311,500
Direct labor		564,000
Variable factory overhead		92,000
Fixed factory overhead		144,500		2,112,000
Selling and administrative expenses:
Variable selling and administrative expenses		$65,500
Fixed selling and administrative expenses		27,500		93,000

a. Prepare an income statement according to the absorption costing concept. b. Prepare an income statement according to the variable costing concept