Question: I am having trouble with setting up this income statement based on absorption costs. Income Statements- Absorption Costing and Variable Costing Gallatin County Motors Inc.

I am having trouble with setting up this income statement based on absorption costs.

Income Statements- 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 (9,000 units) $900,000
Production costs (12,000 units):
Direct materials $444,000
Direct labor 213,600
Variable factory overhead 106,800
Fixed factory overhead 70,800 835,200
Selling and administrative expenses:
Variable selling and administrative expenses $129,500
Fixed selling and administrative expenses 50,100 179,600

Preparing an income statement according to the absorption costing concept.

Cost of goods sold,Direct laborDirect materials,Fixed factory overhead costs,Sales $- Select -
Cost of goods soldGross profitSalesSelling and administrative expensesVariable factory overhead

- Select -

Direct laborDirect materialsGross profitFixed factory overhead costsSales $- Select -
Cost of goods soldFixed factory overhead costsSalesSelling and administrative expensesVariable factory overhead

- Select -

Operating incomeLoss from operations $- Select -

b. Preparing an income statement according to the variable costing concept.

Contribution marginFixed selling and administrative expensesManufacturing marginSalesVariable selling and administrative expenses $- Select -
Fixed factory overhead costsFixed selling and administrative expensesManufacturing marginVariable cost of goods soldVariable selling and administrative expenses

- Select -

Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling and administrative expenses $- Select -
Fixed factory overhead costsFixed selling and administrative expensesManufacturing marginVariable cost of goods soldVariable selling and administrative expenses

- Select -

Contribution marginFixed selling and administrative expensesManufacturing marginSalesVariable selling and administrative expenses $- Select -
Fixed costs:
Contribution marginFixed factory overhead costsManufacturing marginSalesVariable cost of goods sold $- Select -
Fixed selling and administrative expensesManufacturing marginSalesVariable cost of goods soldVariable selling and administrative expenses

- Select -

Contribution marginOperating incomeManufacturing marginSalesTotal fixed costs

- Select -

Operating incomeLoss from operations $- Select -

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