In May, Vita Sport produced 18,000 cases of powdered drink mix and sold 19,000 cases, of which 1,000 were produced in April. The total April production was 20,000. The sales price was $27, variable costs were $15 per case ($10 manufacturing and $5 selling and administrative), and total fixed costs were $90,000 ($72,000 manufacturing and $18,000 selling and administrative). Vita Sport's May income statement using variable costing follows: (Click the icon to view the variable costing income statement.) Read the requirements. Reference Requirements Requirement 1. Prepare the May income statement using absorption costing. Vita Sport Income Statement (Absorption Costing) Month Ended May 31 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. Vita Sport Income Statement (Variable Costing) Month Ended May 31 Net Sales Revenue $ 513,000 Variable Costs Print Done Variable Manufacturing Overhead $ 190,000 95,000 285,000 Variable Selling and Administrative Costs Contribution Margin 228,000 Fixed Costs: Fixed Manufacturing Overhead Fixed Selling and Administrative Costs 72,000 18,000 90,000 $ 138,000 Operating Income Operating Income Print Done Choose from any list or enter any number in the input fields and then click Check