Ch 14 - Homework book Calculator Profe Center Responsibility Reporting. On Demand Sports Co. operates two divisions the Action Sports Division and the Team Sports Division. The following income and mpense accounts were provided as of November 20, 2011, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded Sales Action Sports (AS) Division SIB.500.000 30 10.700.000 1920 Cost of Goods Sold-Action Sports (AS) Division Cost of Goods Sold-Team Sports (TS) Division Sales Expense Action Sports (AS) Division Sales Expense Team Sports (TS) Division trative Expense Action Sports (AS) Division Adorative Expre-Team Sports (15) Division Advertising Expense 2.100.000 A 3,000,000 Accounts Receivable Collection Expense Warehouse were The bases to be used in allocating expenses, together with other essential information 2. Advertising expense mincurred at beadowarters, charged back to divisions on the basis of usage: Action Sports Division, BL200,000; Team Sports Division, B1,200,000. b. Transportation expensen charged back to divisions at a change rate of 110.30 per bill of lading: Action Sports Division, 14,000 bits of lading Team Sports Division, 25,400 bills of lading. dhe Sports Division, 12,500 sales invoices d. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Action Sports Division, 120,000 square feet; Team Sports Div square feet Prepare divisional income statements with two column headings: Action Sports Division and Team Sports Division ON-DEMAND SPORTS CO. Divisional Income Statements For the Year Ended November 30, 2011 Action Sports Division Team Sports Division Operating income before service department charges Less service department charges: Operating income before service department charges Less service department charges Operating income Provide supporting schedules for determining service department change ON-DEMAND SPORTS CO. Service Department Charges Action Sports Division Team Sports Division Advertising expense Transportation rate per bill of lading S Provide supporting chedules for determining service department charges ON-DEMAND SPORTS CO. Service Department Charges Action Sports Division Team Sports Division Total Advertising expense Transportation rate per bill of lading Number of bills of lading Transportation expense Accounts receivable collection rate Number of sales invoices Accounts receivable collection expense Warehouse rate per sq. ft. Number of square feet Warehouse expense Profit Center Responsibility Reporting On-Demand Sports Co. operates two divisions--the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of November 30, 201, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded: $18,500,000 30,600,000 10,700,000 19,200,000 Sales-Action Sports (AS) Division Sales-Team Sports (TS) Division Cost of Goods Sold-Action Sports (AS) Division Cost of Goods Sold-Team Sports (TS) Division Sales Expense-Action Sports (AS) Division Sales Expense --Team Sports (TS) Division Administrative Expense-Action Sports (AS) Division Administrative Expense --Team Sports (TS) Division 1,500,000 2,100,000 1,250,000 1,450,000 3.000.000 654,900 400,500 300,000 Advertising Expense Transportation Expense Accounts Receivable Collection Expense Warehouse Expense The bases to be used in allocating expenses, together with other essential information, are as follows: . Advertising expense-incurred at headquarters, charged back to divisions on the base of usage: Action Sports eBook Calculator a. Advertising expense-incurred at headquarters, charged back to divisions on the basis of usage: Action Sports Division, $1,200,000; Team Sports Division, $1,800,000. b. Transportation expense-charged back to divisions at a charge rate of $18.50 per bill of lading: Action Sports Division, 14,000 bills of lading: Team Sports Division, 21,400 bills of lading. C. Accounts receivable collection expense incurred at headquarters, charged back to divisions at a charge rate of $9.00 per invoice: Action Sports Division, 32,000 sales invoices; Team Sports Division, 12,500 sales invoices. d. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Action Sports Division, 120,000 square feet; Team Sports Division, 80,000 square feet Prepare divisional income statements with two column headings: Action Sports Division and Team Sports Division ON-DEMAND SPORTS CO. Divisional Income Statements For the Year Ended November 30, 2011 Action Sports Division Team Sports Division Operating income before service department charges Less service department charges: 00 Quodud Total Operating income Provide supporting schedules for determining service depan ON-DEMAND SPORTS CO. Service Department Charges Action Sports Division Advertising expense signment .cooker assignments&takeAssignmentSessionLocator assignment-takeinprogressos ON-DEMAND SPORTS CO. Service Department Charges Action Sports Division Team Sports Division Total Advertising expense Transportation rate per bill of lading Number of bills of lading qopdu.u D D D Transportation expense Accounts receivable collection rate Number of sales invoices Accounts receivable collection expense Warehouse rate per sq. ft. Number of square feet Warehouse expense ( Previous Next Check My Work
