EXERCISE - 6 Traditional and Contribution Format Income Statements [S] LO1-6. (2) Cheroket Ine, is a merchandiser that provided the following information: Required: 1. Prepare a traditional income statement. 2. Prepere a contribution format income statement. Exercise 1-8 EXERCISE 1-7 Direct and Indirect Costs [1-1 Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, costs per unit are as follows: EXERCISE 1-8 Product Costs and Perlod Costs; Varlable and Fixed Costs LO1-3, 4 LO Refer to the date given in (e) 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 finanicial accounting purposes. What is the totel emount of period costs incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total amouat of product costs incurred to make 22,000 units? 4. For financial accounting purposes, what is the total emount of period costs incurred to sell 18,000 units? EXERCISE 1-17 Classifying Variable and Fixed Costs and Product and Period Costs 5 LO1-3, 5 LO-4 Below are listed various costs that are found in organizations. 1. Hamburger buns in a Wendy's restaurant. 2. Advertising by e dental office. 3. Apples processed and canned by Del Monte. 4. Shipping canned apples from a Del Monte plant to customers. 5. Insurence on Beusch \& Lomb factory producing contect lenses. 6. Insurance on Nucor's corporate headquarters. 7. Salary of supervisor oversecing production of printers at Ricoh. '\&. Commissions peid to eutomobile salespersons. 9. Depreciation of fectory lunchroom facilities at a General Electric plant. 10. Steering wheels installed in Iesla clectric vehicles. Required: Wring the table shown below, describe each of the costs mentioned above in two ways. In terms of cost classifications for predicting cost behavior (column 1), indicate whether the cost is fixed or variable with respect to the number of units produced and sold. With respect to cort classifications for preparing finencial statements (column 2), indicate whether the item is a product cost or period cost (selling and administrative cost). PROBLEM 1-18 Direct and Indirect Costs; Variable Costs [9 LO1-1, LO1-4 The following cost dete pertain to the operations of Montgomery Department Stores, inc, for the month of Jaly: The Evendele Store is one of many stores owned and operated by the company. The Apparel Department is one of many department the Evendale Store. The central warehouse serves all of the company's stores. Required: 1. What is the total amount of the costs listed above that are direct costs of the Apparel Department? 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store? 3. Whet is the total emount of the Apparel Department's direct costs that are also variable costs with respect to total departmental saics