Financial Managerial Accounting: E21-18 In May 2014, VitaSport produced 20,000 cases
Financial Managerial Accounting E21-18 Preparing variable costing income statements, production less than sales Refer to your answers in E21-15. In May 2014, VitaSport produced 20,000 cases of powdered drink mix and sold 23,000 cases, of which 3,000 were produced in April. The sale price was $22, variable costs were $14 per case ($10 manufacturing and $4 selling and administrative), and total fixed costs were $55,000 ($40,000 manufacturing and $15,000 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.