Show Wow Income Statements under Absorption contine and variable conting Callatin County Motors inc assembles and sells nowmobile engines. The company began operations on July 1 and operated at 100 of cabadty during the first month. The following data summarize the results for Saly! Sales (11.500 units) $1,265,000 Production costs (15,000 units) Direct materials $610,500 Direct labor 292,500 Variable factory overhead 147,000 Fixed factory overhead 97,500 1,147,500 Selling and administrative expenses: Variable selling and administrative expenses $177,900 Fixed selling and administrative expenses 68,900 246,800 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 DIDIO B Total fixed costs Operating income