Sales $(11,000$ units$)$

$$1,540,000$

Production costs $(14,000$ units$)$:

Selling and administrative expenses:

Variable selling and administrative expenses $$211,400$

Fixed selling and administrative expenses $,81,800,293,200$

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 $31$

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

Gallatin County Motors Inc.

Variable Costing Income Statement

For the Month Ended July $31$

Fixed costs: