In May, Limonade produced 15,000 cases of powdered drink mix and sold 18,000 cases, of which 3,000 and $3 selling and administrative), and total fixed costs were $70,000 ($45,000 manufacturing and $25,00 (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 Operating Income besu 3,000 were produced in April. The total April production was 12,000. The sales price was $30, variable costs were $12 per case $25,000 selling and administrative). Limonade's May Income stalement using variable couting follows: Help production was 12,000. The sales price was $30, variable costs were $12 per case (manufacturing He's May income statement using variable costing follows: Reference Limonade Income Statement (Variable Costing) Month Ended May 31 Net Sales Revenue $ 540,000 $ 162,000 54,000 216,000 324,000 Variable Costs: Variable Manufacturing Overhead Variable Selling and Administrative Costs Contribution Margin Fixed Costs: Fixed Manufacturing Overhead Fixed Selling and Administrative Costs Operating Income 45,000 25,000 70,000 $ 254,000 Print Done * Requirements 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