Read the requirements. Requirement 1. Prepare the May income statement using absorption costing. ExerAde Income Statement (Absorption Costing) Month Ended May 31 Net Sales Revenue Variable Costs Operating Income was $28. variable costs were 57 per case (55 manufacturing and 52 selling and administrative), and total fixed costs were $75,000 (555 000 were produced in April. The total April production was 12,000. The sales price was $28, variable costs were $7 per case (55 manufacturing costing follows EM6-20 (similar to) In May, Exerade produced 11,000 cases of powdered drink mix and sold 12,000 cases, of which 1,000 were produced in April.TH manufacturing and $20,000 selling and administrative) Exerade's May income statement using variable costing follows. (Click the icon to view the variable costing income statement) Read the requirements X 0 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 Read the requirements. Requirement 1. Prepare the May income statement using absorption costing. ExerAde Income Statement (Absorption Costing) Month Ended May 31 Net Sales Revenue Variable Costs Operating Income was $28. variable costs were 57 per case (55 manufacturing and 52 selling and administrative), and total fixed costs were $75,000 (555 000 were produced in April. The total April production was 12,000. The sales price was $28, variable costs were $7 per case (55 manufacturing costing follows EM6-20 (similar to) In May, Exerade produced 11,000 cases of powdered drink mix and sold 12,000 cases, of which 1,000 were produced in April.TH manufacturing and $20,000 selling and administrative) Exerade's May income statement using variable costing follows. (Click the icon to view the variable costing income statement) Read the requirements X 0 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