E21-20 (similar to) Question Help In May 2018, Limonade produced 18,000 cases of powdered drink mix and sold 21,000 cases, of which 3,000 were produced in April. The total April production was 20,000. The sales price was $25, variable costs were $13 per case (510 manufacturing and $3 selling and administrative), and total fixed costs were $90,000 (572,000 manufacturing and $18,000 selling and administrative). Limonade's May income statement using variable costing follows: (Click the icon to view the variable costing income statement.) Read the requirements Requirement 1. Prepare the May income statement using absorption costing. - X Reference Limonade Income Statement (Absorption Costing) Month Ended May 31, 2018 - X Requirements 525,000 1. Prepare the May income statement using absorption costing. 2. Is operating income using absorption costing higher or lower than variable costing income? Explain why. 3. Determine the balance in Finished Goods Inventory as of May 31 Limonade Income Statement (Variable Costing) Month Ended May 31, 2018 Net Sales Revenue $ Variable Costs: Variable Manufacturing Overhead $ 210,000 Variable Selling and Administrative Costs 63,000 Contribution Margin Fixed Costs: Fixed Manufacturing Overhead 72.000 Fixed Selling and Administrative Costs 18,000 $ Operating Income 273.000 252,000 Operating Income Print Done 90.000 162,000 Print Done