Financial Managerial Accounting: E21-15 VitaSport produced 20,000 cases of powdered drink mix

Financial Managerial Accounting
E21- 15 Preparing variable costing income statements, production exceeds sales
VitaSport produced 20,000 cases of powdered drink mix and sold 17,000 cases in April 2014. 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 overhead and $ 15,000 selling and administrative). The company had no beginning Finished Goods Inventory.

Requirements
1. Prepare the April income statement using variable costing.
2. Determine the balance in Finished Goods Inventory as of April 30.
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