In May 2018, Limonade produced 10,000 cases of powdered drink mix and sold 12,000 cases, of which 2,000 were produced in April. The total April production was 15,000. The sales price was $27, variable costs were $13 per case ($10 manufacturing and $3 selling and administrative), and total fixed costs were $75,000 ($60,000 manufacturing and $15,000 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. Limonade Income Statement (Absorption Costing) Month Ended May 31, 2018 i Requirements Net Sales Revenue Cost of Goods Sold: Variable Cost of Goods Sold Fixed Cost of Goods Sold Gross Profit Selling and Administrative Costs: Variable Selling and Administrative Costs Fixed Selling and Administrative Costs Operating Income 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. Print Done