Cherokee Incorporated is a merchandiser that provided the following information: AmountNumber of units sold11,000Selling price per unit$ 17Variable selling expense per unit$ 2Variable administrative expense per unit$ 2Total fixed selling expense$ 18,000Total fixed administrative expense$ 14,000Beginning merchandise inventory$ 12,000Ending merchandise inventory$ 23,000Merchandise purchases$ 86,000 Required:1. Prepare a traditional income statement.2. Prepare a contribution format income statement. Cherokee, IncorporatedContribution Format Income StatementSalesVariable expenses:Cost of goods soldFixed expenses:Poquired 4.$187,00000Required 2 Required 1 Required 2Prepare a traditional income statement.Cherokee, IncorporatedTraditional Income StatementSalesCost of goods soldGross marginSelling and administrative expenses:Fixed manufacturing overheadSelling expensesAdministrative expensesSelling expensesNet operating income×›>× $>>>59 x14,00018,000$187,00075,000✔22,000 X32,059Return

The income statement explains the financial performance of the company for a particular period of…

kee Incorporated is a merchandiser that provided the following information: Amount Number of units sold 11,000 Selling price per unit $ 17 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 18,000 Total fixed administrative expense $ 14,000 Beginning merchandise inventory $ 12

kee Incorporated is a merchandiser that provided the following information: Amount Number of units sold 11,000 Selling price per unit $ 17 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 18,000 Total fixed administrative expense $ 14,000 Beginning merchandise inventory $ 12

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.13MCE

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	Amount
Number of units sold	11,000
Selling price per unit	$ 17
Variable selling expense per unit	$ 2
Variable administrative expense per unit	$ 2
Total fixed selling expense	$ 18,000
Total fixed administrative expense	$ 14,000
Beginning merchandise inventory	$ 12,000
Ending merchandise inventory	$ 23,000
Merchandise purchases	$ 86,000

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