Question
Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Cherokee Incorporated is a merchandiser that provided the following information: Amount Number of units sold
Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6]
Cherokee Incorporated is a merchandiser that provided the following information:
Amount
Number of units sold 13,000
Selling price per unit
$ 17 Variable selling expense per unit
$ 1 Variable administrative expense per unit
$ 2 Total fixed selling expense $ 20,000
Total fixed administrative expense $ 16,000
Beginning merchandise inventory $ 12,000
Ending merchandise inventory $ 26,000
Merchandise purchases $ 88,000
Required: 1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.
Required 1
Prepare a traditional income statement.
Cherokee, Incorporated Traditional Income Statement
Selling and administrative expenses:
Required 2
Prepare a contribution format income statement.
Cherokee, Incorporated Contribution Format Income Statement
Variable expenses:
Fixed expenses:
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