Problem:
Whitman Corporation, a merchandising company, reported sales of 7,400 units for May at a selling price of $677 per unit. The cost of goods sold (all variable) was $441 per unit and the variable selling expense was $54 per unit. The total fixed selling expense was $155,600. The variable administrative expense was $24 per unit and the total fixed administrative expense was $370,400.
Required:
Question 1: Prepare a contribution format income statement for May.
Question 2: Prepare a traditional format income statement for May.
Note: Please show the work not just the answer.