In June 2018, Refresh Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.The sale price was $54 per jar. Variable costs were $20 per case ($16 manufacturing and $4selling & administrative) and total fixed costs were $90,000 ($70,000 manufacturing and$20,000 selling & administrative).The company had no beginning inventory.Required:1.Prepare the June income statement for Refresh Ade using variable costing, clearlyshowing contribution and the components of total fixed costs.

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.