Cherokee Inc. is a merchandiser that provided the following information Page 51 Amount 20,000 $30 $4 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 $2 $40,000 $30,000 $24,000 $44,000 $180,000 Required: 1. Prepare a traditional income statement 2. Prepare a contribution format income statement. Exercise 1-8 EXERCISE 1-8 Product Costs and Period Costs: Variable and Fixed Costs 101-3, 401-4 Refer to the data siven in Exercise 1-7. Answer all questions independently. Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units! 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units? EXERCISE 1-17 Classifying Variable and Fixed Costs and Product and Period Costs L01-3, 01-4 Below are sted various come that we found in organisations 1. Hamburger buns in Wendy's warent. 2. Advertising by dental office 3. Apples processed and canned by Del Monte 4. Shipping canned apples from Del Monte plant to customers 3. Insurance on Bausch & Lomb factory producing contact lenses 6. Insurance on Nacoe's corporate headquarters 7. Salary of a supervisor oversting production of printers Ricoh 8. Commissions paid to automobile salespersons 9. Depreciation of factory lunchroom facilities as Geseed Electric plant 10. Steering wheel instaland in India ciectric vehicles Required: Uring the table thow below, describe each of the contentioned above in two wole terms of cost delication for predicting co behavior (cota 1) indicate whether the cost is fixed or variable with respect to the sumber of units produced and sold. With respect to cont clarifications for preparing financial statement (colon2)indicate whether the item in a perduet cost or period.com (telling und einistrative cost). Con Classification for Predicting Preparing Cost litem Com Behavior Financial Statement Problem 1-18 PROBLEM 118 Direct and Indirect Costs: Variable Costs L01-1101-4 The following cout data pertain to the operations of Montpomery Department Stoets, Ite for the month of July Corporate legal office starts $56,000 Apparel Department cost of tal-Evedele Store 890,000 Corporate headquarters building lease $48,000 Store manager-vendale Stor $12.000 Apparel Departament de commovendet Store $7.000 Store utilities Evendale Store 511,000 Apparel Department manager's salary-Exendale Store 35,000 Central warehow les con $ 15,000 Janitorial conte-Evodile Store 59,000 The Evtedale Store is one of meer vores owned and operated by the company. The Apparel Department is one of many departments a the Evendale Store. The central warehouse serves all of the company's store Required: 1. What is the total amount of the counted above that direct costs of the App Department 2. What is the total amount of the costs fisted above that we direct costs of the Evendale Start 3. What is the total amount of the Apparel Department's direct costs that are also variable costs with respect to total department sed