In May 2018, Replende produced 18,000 cases of powdered drink mix and sold 20,000 cases, of which 2,000 were produced in April. The total April production was 20,000. The sales price was $25, variable costs were $11 per case ($8 manufacturing and $3 selling and administrative), and total fixed costs were $90,000 (572,000 manufacturing and $18,000 selling and administrative). ReplenAde's May income statement using variable costing follows: (Click the icon to view the variable costing income statement.) X Read the requirements. Requirements Requirement 1. Prepare the May income statement using absorption costing. 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. ReplenAde Income Statement (Absorption Costing) Month Ended May 31, 2018 Print Done JReplenAde Income Statement (Variable Costing) Month Ended May 31, 2018 Net Sales Revenue S 500.000 $ 160,000 60,000 Operating Income 220,000 280.000 Variable Costs: Variable Manufacturing Overhead Variable Selling and Administrative Costs Contribution Margin Fixed Costs: Fixed Manufacturing Overhead Fixed Selling and Administrative Costs Operating Income 72,000 18,000 90.000 Help Me Solve This DemoDocs Example Get More Help S 190,000