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In May 2018, VitaSport produced 18,000 cases of powdered drink mix and sold 20,000 cases, of which 2,000 were produced in April. The sales price was $23, variable costs were $10 per case($8 manufacturing and $2 selling and administrative), and total fixed costs were $90,000($72,000 manufacturing and $18,000 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.

In May 2018, VitaSport produced 18,000 cases of powdered drink mix and sold 20,000 cases, of which 2,000 were produced in April. The sales price was $23, variable costs were $10 per case($8 manufacturing and $2 selling and administrative), and total fixed costs were $90,000($72,000 manufacturing and $18,000 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In May 2018, VitaSport produced 18,000 cases of powdered drink mix and sold 20,000 cases, of which 2,000 were produced in April. The sales price was $23, variable costs were $10 per case($8 manufacturing and $2 selling and administrative), and total fixed costs were $90,000($72,000 manufacturing and $18,000 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.
Transcribed Image Text:In May 2018, VitaSport produced 18,000 cases of powdered drink mix and sold 20,000 cases, of which 2,000 were produced in April. The sales price was $23, variable costs were $10 per case($8 manufacturing and $2 selling and administrative), and total fixed costs were $90,000($72,000 manufacturing and $18,000 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.
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