Cherokee Inc. is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Amount 13,000 16 1 2 $ 22,000 $ 15,000 $ 12,000 $ 25,000 $ 88,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank 1. Depreciation on salespersons' cars 2 Rent on equipment used in the factory. 3 Lubricants used for machine maintenance Costs 4 Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift 6 Factory supervisors' salaries 7. Heat water, and power consumed in the factory 8. Materials used for boxing products for shipment overseas (Units are not normally boxed) 9 Advertising costs. 10 Workers' compensation insurance for factory employees. 11 Depreciation on chairs and tables in the factory lunchroom. 12 The wages of the receptionist in the administrative offices 13 Cost of leasing the corporate jet used by the company's executives 14. The cost of renting rooms at a Florida resort for the annual sales conference 15. The cost of packaging the company's product Product Cost/ Period Cost arch n < Prev 5 of 6 Nexty a < 13C A DENG 19