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 andadministrative), and total fixed costs were $70,000 ($45,000 manufacturing and $25,000 selling andadministrative).

Requirement

1. Prepare the May income statement using variable costing.

2. Determine the balance in Finished Goods Inventory as of May 31.