Whitman Corporation, a merchandising company, reported sales of 7,400 units for May at a selling price of P 677 per unit. The cost of goods sold (all variable) was P 441 per unit and the variable selling expense was P 54 per unit. The total fixed selling expense was P 155,600. The variable administrative expense was P 24 per unit and the total fixed administrative expense was P 370,400. Prepare a traditional format and contribution format income statement for May. You may use the excel file in the practice sheet. Please see the attatched photo for reference. Chapter 1: Applying ExcelDataSales$12,000Variable costs:Cost of goods soldVariable sellingVariable administrative$6,000$600$400Fixed costs:Fixed selling$2,500Fixed administrative$1,500Enter a formula into each of the cells marked with a ? belowExhibit 2-9Traditional Format Income Statement$ 12,0006,0006,000SalesCost of goods soldGross marginSelling and administrative expenses:SellingAdministrative2$3,1001,9005,000$ 1,000Net operating incomeContribution Format Income StatementSales$ 12,000Variable expenses:Cost of goods soldVariable selling2$6,000600Variable administration4007,0005,000Contribution marginFixed expenses:Fixed selling2,500Fixed administrative1,5004,000$ 1,000Net operating income

Name: Whitman Corporation, a merchandising company, reported sales of 7,400
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Description: Whitman Corporation, a merchandising company, reported sales of 7,400 units for May at a selling price of P 677 per unit. The cost of goods sold (all variable) was P 441 per unit and the variable selling expense was P 54 per unit. The total fixed sel

Income statement is prepared by the business organization so as to know how much amount of Gross…

Answered: Whitman Corporation, a merchandising…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Whitman Corporation, a merchandising company, reported sales of 7,400 units for May at a selling price of P 677 per unit. The cost of goods sold (all variable) was P 441 per unit and the variable selling expense was P 54 per unit. The total fixed selling expense was P 155,600. The variable administrative expense was P 24 per unit and the total fixed administrative expense was P 370,400. Prepare a traditional format and contribution format income statement for May. You may use the excel file in the practice sheet.

Please see the attatched photo for reference.

Chapter 1: Applying Excel
Data
Sales
$12,000
Variable costs:
Cost of goods sold
Variable selling
Variable administrative
$6,000
$600
$400
Fixed costs:
Fixed selling
$2,500
Fixed administrative
$1,500
Enter a formula into each of the cells marked with a ? below
Exhibit 2-9
Traditional Format Income Statement
$ 12,000
6,000
6,000
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling
Administrative
2$
3,100
1,900
5,000
$ 1,000
Net operating income
Contribution Format Income Statement
Sales
$ 12,000
Variable expenses:
Cost of goods sold
Variable selling
2$
6,000
600
Variable administration
400
7,000
5,000
Contribution margin
Fixed expenses:
Fixed selling
2,500
Fixed administrative
1,500
4,000
$ 1,000
Net operating income

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