Chapter 21, Problem 19E

Refer to your answers to Exercise E21-16. In May 2018, ReVitalAde produced 22,000 cases of powdered drink mix and sold 23,000 cases, of which 1,000 were produced in April. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing and $9,000 selling and administrative).

Requirements

1. 1. Prepare the May income statement using variable costing.
2. 2. Determine the balance in Finished Goods Inventory as of May 31.