Problem $1-18($Algo$)$ Direct and Indirect Costs; Variable Costs $[$L$01-1,$ LO$1-4]$

The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July.

The Evendale Store is one of many stores owned and operated by the company. The Apparel Department is one of many departments

at the Evendale Store. The central warehouse serves all of the company's stores.

Required:

What is the total amount of the costs listed above that are direct costs of the Apparel Department?

What is the total amount of the costs listed above that are direct costs of the Evendale Store?

What is the total amount of the Apparel Department's direct costs that are also variable costs with respect to total departmental

sales?Problem $1-21($Algo$)$ Traditional and Contribution Format Income Statements $[$L$01-6]$

Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $$1,506$ per unit and then sells

them to retail customers for an average price of $$2,400$ each. The company's selling and administrative costs for a typical month are

presented below:

During August, Marwick's Pianos, Incorporated, sold and delivered $55$ pianos.

Required:

Prepare a traditional format income statement for August.

Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down

through contribution margin.