Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if you could explain how you found expenses, it would be much appreciated. thank you Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6]

image text in transcribed
image text in transcribed
image text in transcribed
if you could explain how you found expenses, it would be much appreciated. thank you
Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6] 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 14,000 $ 17 $ 2 $ 2 $21,000 $15,000 $11,000 $24,000 $89,000 Required: 1. Prepare a traditional income statement 2. Prepare a contribution format income statement Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement $ 238,000 76,000 162,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ $ 21,000 28,000 49,000 Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Inc. Contribution Format Income Statement Variable expenses: 0 Fixed expenses

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organizing Smart Buildings And CitiesPromoting Innovation And Participation

Authors: Elisabetta Magnaghi, VĂ©ronique Flambard, Daniela Mancini, Julie Jacques, Nicolas Gouvy

10th Edition

3030606066, 9783030606060

More Books

Students also viewed these Accounting questions