In May 2018, VitaSport produced 18,000 cases of powdered drink mix and sold 20,000 cases, of which 2,000 were produced in April. The sales price was $23, variable costs were $10 per case($8 manufacturing and $2 selling and administrative), and total fixed costs were $90,000($72,000 manufacturing and $18,000 selling and administrative).

Requirements:

1. Prepare the May income statement using variable costing.

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