Cherokee Inc. is a merchandiser that provided the following information:

	Amount
Number of units sold		11,000
Selling price per unit	$	16
Variable selling expense per unit	$	1
Variable administrative expense per unit	$	3
Total fixed selling expense	$	18,000
Total fixed administrative expense	$	15,000
Beginning merchandise inventory	$	11,000
Ending merchandise inventory	$	23,000
Merchandise purchases	$	87,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

Category Options:

Administrative expenses

Beginning merchandise inventory

Cost of goods sold

Direct labor

Direct materials

Ending merchandise inventory

Fixed manufacturing overhead

Indirect labor

Indirect materials

Manufacturing overhead

Purchases

Sales

Selling expenses

Variable manufacturing overhead