Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 11,000 Selling price per unit $16 Variable selling expense per unit $1 Variable administrative expense per unit $1 Total fixed selling expense $20,000 Total fixed administrative expense $15,000 Beginning merchandise inventory $11,000 Ending merchandise inventory $26,000 Merchandise purchases $88,000. Required:
a. Prepare a traditional income statement.
b. Prepare a contribution format income statement.

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: