Whitman Corporation, a merchandising company, reported sales of 12,100 units for May at a selling

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
Sales		$
Variable expenses:
Cost of goods sold	$
Variable selling expense
Variable administrative expense
Contribution margin
Fixed expenses:
Fixed selling expense
Fixed administrative expense
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
Sales		$
Cost of goods sold
Gross margin
Operating expenses:
Selling expense	$
Administrative expense
Net operating income (loss)		$

Explanation: a.

Sales (12,100 units × $714 per unit) = $8,639,400

Cost of goods sold (12,100 units × $448 per unit) = $5,420,800

Variable selling expense (12,100 units × $63 per unit) = $762,300

Variable administrative expense (12,100 units × $28 per unit) = $338,800

b.

Sales (12,100 units × $714 per unit) = $8,639,400

Cost of goods sold (12,100 units × $448 per unit) = $5,420,800

Selling expense ((12,100 units × $63 per unit) + $163,800) = $926,100

Administrative expense ((12,100 units × $28 per unit) + $376,100) = $714,900