Cherokee inc. is a merchandiser that provided the following information: Number of units sold13,000 Selling price per
Question:
Cherokee inc. is a merchandiser that provided the following information:
Number of units sold………………………………………13,000
Selling price per unit………………………………………..$ 16
Variable selling expense per unit……………………..$ 1
Variable administrative expense per unit………….$ 2
Total fixed selling expense……………………………$ 20,000
Total fixed administrative expenses……………..$14,000
Beginning merchandise inventory…………………$10,000
Ending merchandise inventory………………………$24,000
Merchandise purchases…………………………………$87,000
Required:
1. prepare a traditional income statement.
Cherokee, Inc. | ||
Traditional income statement | ||
Sales |
| $208,000 |
Cost of goods sold |
| 111,001 |
Gross margin |
|
|
Selling and administrative expenses: | 33,000 |
|
Selling expenses |
|
|
Administrative expenses |
|
|
|
| 33,000 |
Net operating income |
|
|
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer