Income Statements under Absorption conting 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 8,000 units) S880,000 Production costs (10,000 units) Direct materials 5407,000 Direct labor 195.000 Variable factory overhead 90,000 Fixed factory overhead 65,000 765.000 Selling and administrative expenses Variable setting and administrative expenses $110,600 Fixed selling and administrative expenses 45,900 164,500 It required, round interim per unit calculations to the nearest cent Prepare an income statement according to the absorption costing concept Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 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 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 JUU Fixed costs contato con Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 duid Foxed costs DO c. What is the reason for the difference in the amount of operating income reported in (a) and Under the method, the fred manufacturing cost included in the cost of goods sold matched with the under manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory changeThus, when inventory increases the statement will have a higher operating income the Income