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 (3,500 units) $2,135,000
Production costs (4,000 units):
Direct materials $1,049,200
Direct labor 451,200
Variable factory overhead 73,600
Fixed factory overhead 115,600 1,689,600
Selling and administrative expenses:
Variable selling and administrative expenses $52,400
Fixed selling and administrative expenses 22,000 74,400

Required:
Prepare an income statement according to the absorption costing concept.