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Question - In May 2018?, Limonade produced 15,000 cases of powdered drink mix and sold 18,000 ?cases, of which 3,000 were produced in April. The sales price was $24?, variable costs were $13 per case ?($10 manufacturing and $3 selling and? administrative), and total fixed costs were $70,000 ?($45,000 manufacturing and $25,000 selling and? administrative).
Required -
1. Prepare the May income statement using variable costing.
2. Determine the balance in Finished Goods Inventory as of May 31.
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