Managerial Accounting: E21-18 In May 2016, RefreshAde produced 20,000 cases

Financial Managerial Accounting
E21-18 Preparing variable costing income statements, production less than sales
Refer to your answers to Exercise E21-15.
In May 2016, RefreshAde produced 20,000 cases of powdered drink mix and sold 23,000 cases, of which 3,000 were produced in April. The sales price was $30, variable costs were $13 per case ($10 manufacturing and $3 selling and administrative), and total fixed costs were $70,000 ($45,000 manufacturing and $25,000 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.
Powered by