Cherokee Incorporated is a merchandiser that provided the following inform 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 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Amount 14,000 $ 18 $ 1 $ 3 $ 20,000 $ 15,000 $ 8,000 $ 23,000 $ 88,000

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cherokee Incorporated is a merchandiser that provided the following information:
Amount
14,000
$ 18
$ 1
$ 3
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
Required:
1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.
Required 1
Complete this question by entering your answers in the tabs below.
Required 2
Prepare a traditional income statement.
Cherokee, Incorporated
Traditional Income Statement
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Variable manufacturing overhead
Fixed manufacturing overhead
Beginning merchandise inventory
Ending merchandise inventory
Net operating income
$
$ 20,000
$ 15,000
< Required 1
$ 8,000
$ 23,000
$ 88,000
73,000
43,000
30,000
0
Required 2 >
Transcribed Image Text:Cherokee Incorporated is a merchandiser that provided the following information: Amount 14,000 $ 18 $ 1 $ 3 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 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Required 1 Complete this question by entering your answers in the tabs below. Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Variable manufacturing overhead Fixed manufacturing overhead Beginning merchandise inventory Ending merchandise inventory Net operating income $ $ 20,000 $ 15,000 < Required 1 $ 8,000 $ 23,000 $ 88,000 73,000 43,000 30,000 0 Required 2 >
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