ThatDudeLv1

5 Jul 2022

Can someone please answer this? The directions are in the photo

Cherokee Incorporated is a merchandiser that provided the following information:

 

                                                                   Amount

Number of units sold                                      $ 11,000 

Selling price per unit                                      $ 17 

Variable selling expense per unit                     $ 1 

Variable administrative expense per unit          $ 2 

Total fixed selling expense                               $ 21,000 

Total fixed administrative expense                    $ 13,000 

Beginning merchandise inventory                     $ 11,000 

Ending merchandise inventory                          $ 23,000 

Merchandise purchases                                    $ 87,000

 

Required:

1. Prepare a traditional income statement.

2. Preparé a contribution format income statement.

 

Complete this question by entering your answers in the tabs below.

 

Prepare a traditional income statement

Cherokee, Incorporated

Traditional Income Statement

Selling and administrative expenses