b. Prepare an income statement according to the variable costing concept.Gallatin County Motors Inc.Variable Costing Income StatementFor the Month Ended July 31Fixed costs:c. What is the reason for the difference in the amount of operating income reported in (a) and (b)?method, the fixed manufacturing cost included in the cost of goods sold is matched with theall of the fixed manufacturing cost is deducted in the period in which it is incurred,Iincome statementUnder therevenues. Underregardless of the amount of inventory change. Thus, when inventory increases, thewill have a higher operating income. Income Statements under Absorption Costing and Variable CostingGallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at100% of capacity during the first month. The following data summarize the results for July:Sales (13,500 units)$1,620,000Production costs (17,000 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadSelling and administrative expenses:Variable selling and administrative expensesFixed selling and administrative expenses$754,800362,100181,900120,700 1,419,500If required, round interim per-unit calculations to the nearest cent.For the Month Ended July 31$220,00085,200a. Prepare an income statement according to the absorption costing concept.Gallatin County Motors Inc.Absorption Costing IncomeStatementCheck My Work305,200b. Prepare an income statement according to the variable costing concept.PreviousNext

Name: b. Prepare an income statement according to the variable costing conc
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Description: b. Prepare an income statement according to the variable costing concept.Gallatin County Motors Inc.Variable Costing Income StatementFor the Month Ended July 31Fixed costs:c. What is the reason for the difference in the amount of operating income re