Question

Whitman Corporation, a merchandising company, reported sales of 12,100 units for May at a selling price of $714 per unit. The cost of goods sold (all variable) was $448 per unit and the variable selling expense was $63 per unit. The total fixed selling expense was $163,800. The variable administrative expense was $28 per unit and the total fixed administrative expense was $376,100.

Required:
a.	Prepare a contribution format income statement for May. (Input all amounts as positive values. Omit the "$" sign in your response.)

Whitman Corporation Income Statement
(Click to select)  Variable selling expense  Cost of goods sold  Variable administrative expense  Fixed administrative expense  Sales  Contribution margin  Net operating income (loss)  Fixed selling expense		$
Variable expenses:
(Click to select)  Sales  Net operating income (loss)  Contribution margin  Cost of goods sold  Fixed administrative expense  Variable administrative expense  Fixed selling expense  Depreciation expense  Variable selling expense	$
(Click to select)  Cost of goods sold  Fixed selling expense  Depreciation expense  Fixed administrative expense  Net operating income (loss)  Variable administrative expense  Variable selling expense  Contribution margin  Sales
(Click to select)  Cost of goods sold  Net operating income (loss)  Contribution margin  Variable selling expense  Variable administrative expense  Sales  Fixed selling expense  Depreciation expense  Fixed administrative expense
(Click to select)  Contribution margin  Cost of goods sold  Sales  Net operating income (loss)  Variable administrative expense  Fixed administrative expense  Fixed selling expense  Variable selling expense
Fixed expenses:
(Click to select)  Fixed selling expense  Net operating income (loss)  Sales  Variable selling expense  Contribution margin  Fixed administrative expense  Variable administrative expense  Cost of goods sold
(Click to select)  Sales  Variable administrative expense  Cost of goods sold  Net operating income (loss)  Variable selling expense  Fixed administrative expense  Contribution margin  Fixed selling expense
(Click to select)  Sales  Fixed selling expense  Variable selling expense  Contribution margin  Fixed administrative expense  Variable administrative expense  Cost of goods sold  Net operating income (loss)		$

b.	Prepare a traditional format income statement for May. (Input all amounts as positive values. Omit the "$" sign in your response.)

                                        

Whitman Corporation Income Statement
(Click to select)  Selling expense  Gross margin  Administrative expense  Cost of goods sold  Sales  Net operating income (loss)		$
(Click to select)  Gross margin  Cost of goods sold  Selling expense  Net operating income (loss)  Administrative expense  Sales
(Click to select)  Net operating income (loss)  Cost of goods sold  Sales  Selling expense  Administrative expense  Gross margin
Operating expenses:
(Click to select)  Cost of goods sold  Administrative expense  Selling expense  Gross margin  Sales  Net operating income (loss)	$
(Click to select)  Gross margin  Selling expense  Cost of goods sold  Net operating income (loss)  Sales  Administrative expense
(Click to select)  Net operating income (loss)  Selling expense  Gross margin  Cost of goods sold  Sales  Administrative expense		$

Answer 1

Answer-a)-

WHITMAN CORPORATION
Contribution Format Income statement
For the month ended May
Particulars			Amount
			$
Sales	12100 units*$714 per unit		8639400
Less:- Variable cost-
Cost of goods sold	12100 units*$448 per unit		5420800
Selling expense	12100 units*$63 per unit		762300
Administrative expense	12100 units*$28 per unit		338800
Contribution margin			2117500
Less- Fixed costs			539900
Selling expense	163800
Administrative expense	376100
Net Income			1577600

b)-

WHITMAN CORPORATION
Traditional Income statement
For the month ended May
Particulars			Amount
			$
Sales	12100 units*$714 per unit		8639400
Less:- Cost of goods sold
Variable	12100 units*$448 per unit		5420800
Gross profit			3218600
Less- Operating expenses
Administrative expense	(12100 units*$28 per unit)+$376100		714900
Selling expense	(12100 units*$63 per unit)+$163800		926100
Net Income			1577600