Homework SourseAccounting The Alpine House Inc Is A Large Retailer Of Sno I
Accounting The Alpine House, Inc., Is A Large Retailer Of Sno... I Chegg.com Cherokee Inc. Is A Merchandiser That Provided The | Chegg.com + CH1 HW 16ed Saved Help Save & Exit Submit Check my work 6 Cherokee Inc. is a merchandiser that provided the following information: Amount 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 30 points $40,000 $30,000 $ 24,000 $44,000 180,000 eBook Hint Print Required 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Mc Graw Hill 6 of 11 
Solution
Traditional income statement Amount Amount Sales revenue 6,00,000 Cost of goods sold 1,60,000 Gross margin 4,40,000 Selling and administration expenses Variable selling expense 80,000 Fixed selling expenses 40,000 Variable administrative expense 40,000 Fixed administrative expense 30,000 Total selling and administrative expenses 1,90,000 Net income 2,50,000 Cost of goods sold Beginning inventory 24,000 Purchases 1,80,000 Goods available for sales 2,04,000 Minus: Ending inventory 44,000 Cost of goods sold 1,60,000 Contribution income statement Total Sales revenue 6,00,000 Variable expenses Cost of goods sold 1,60,000 Variable selling expense 80,000 Variable administrative expense 40,000 Total variable expense 2,80,000 Contribution 3,20,000 Fixed expenses Fixed selling expenses 40,000 Fixed administrative expense 30,000 Total fixed expenses 70,000 Net income 2,50,000