Chapter 10 Homework Question 13

Profitant responsibility reporting Championship Sports Inc. aparates two divisions--the Winter Sports Division and the Summer Sports Division. The following income and expect we provided from the trial balance of December 31, 2049, the end of the fiscal year, after all adjustments, including the for inventories, were recorded and posted Sales-Winter Sports Division 59,600,000 Sales-Summer Sports Divo 16,500,000 Cost of Good Sold-Winter Sports Division 5.000.000 Cost of Good Sold Summer Sports Division 9,600,000 Sales Expense-Winter Sports Division 780,000 Sales Expense-Summer Sports Division 1,200,000 Administrative Expert-Winter Sports Division 730,000 Administrative Expert-Summer Sports Division 1,470,000 Advertising Expanse 1,151,000 Transportation Expanse 322,000 Accounts Receivable Cocin Exorce 68,000 Warehouse Expo 1,042,000 The bases to be used in allocating expenses, together with other information, are as follows a. Advertising experienced at headquarters, charged back to division on the basis of usage Winter Sports Division, $365,000; Summer Sports Division, $786,000. b. Transportation expertse-darged back to divisions at a charge rate of $7.00 per bill of lading: Winter Sports Division, 16,000 bills of lading: Summer Sports Division 30,000 bill of lading. c. Accounts receivable collection assi-incurred at headquarters, charged back to divisions at a charge rate of $1.00 par veice: Winter Sports Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices d. Warehouse expense-charged back to divisions on the basis of floce space sie in storing division products: Winter Sports Division, 58,000 square feet; Summer Sports Division, 88,000 square feet This information has been collected in the Microsoft Excel Online file. Open the spreadset, perform the required analysis, and input your awes in the questions belo. x Open spread Prepare a divisional income statement with two columheadings: Winter Sports Division and Summer Sports Division. Do not round your intermediate calculation Championship Sports Inc. Divisional income statements For the Year Ended December 31, 2019 Winter Sports Summer Sports Division Division Sale Cost of goods sold Groot Divisional sing and administrative Divisional selling expert Divisional administrative Total divisional sing and administrative experts Operating income before or department allocations Support department location Advere Transportation expense Accounts receivable collection expert Warehouse pense Total support department allocation Operating income Provide supporting computation for support department locations required, round per unit amounts to decimal places and all answers to the dollar Championship Sports Inc Support Department Allocations For the Year Ended December 31, 2049 Summer Sports Winter Sports Division Total Division Advertising Transportation rate pe bill of lading Number of bill of lading Transportation Recounts receivable collection rate Number of sal vi Accounts receivable collection expense Warehouse ale person Number of square feet 1.1111 Waren