Glades Sporting Goods Co. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:
D I D [:II) MyCollectionsstatic xj -' CengageNOWvZIOnline 6 G Ch. 24, Quiz B X LI; The ConsumerDivision of X I Course Hero https://v2.cengagenow.com/i|rn/ta keAssignment/takeAssignmentMain.do?invoker:BiiakeAssignmentSessionLocator:&inprogress:false X I I; TheCentraI Division ofCh x I + Profit Center Responsibility Reporting Glades Sporting Goods Co. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, ZDYS, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: SalesWinter Sports Division SalesSummer Sports Division Cost of Goods SoldWinter Sports Division Cost of Goods SoldSummer Sports Division Sales ExpenseWinter Sports Division Sales ExpenseSummer Sports Division Administrative ExpenseWinter Sports Division Administrative ExpenseSummer Sports Division 0 Advertising Expense Transportation Expense Accounts Receivable Collection Expense Warehouse Expense $39,900,000 44,000,000 23,940,000 25,460,000 6,840,000 6,080,000 3,990,000 3,914,000 946,000 567,000 243,200 3,000,000 The bases to be used in allocating expenses, together with other essential information, are as follows: a. Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $444,000; Summer Sports Division, $502,000. b. Transportation expensecharged back to divisions at a charge rate of $13 per bill of iading: Winter Sports Division, 15,000 bills of iading; Summer Sports Division, 16,500 bills of lading. c. Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of $8 per invoice: Winter Sports Division, 14,000 sales invoices; Summer Sports Division, 16,400 sales invoices. d. Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 180,000 square feet; Summer Sports Division, V I. ,0 Type here to search 1021 PM $19,203 J 34"? ' a. $4 P ) My Collection - Static X CengageNOWv2 | Online | X The Consumer Division of X Course Hero x The Central Division of Ch x + X C & https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false . . Ch. 24, Quiz B c. Accounts receivable collection expense-incurred at headquarters, charged back to divisions at a charge rate of $8 per invoice: Winter Sports Division, 14,000 sales invoices; Summer Sports Division, 16,400 sales invoices. ? d. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 180,000 square feet; Summer Sports Division, 220,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Glades Sporting Goods Co. Divisional Income Statements For the Year Ended December 31, 20Y8 Winter Sports Division Summer Sports Division Sales $ Cost of goods sold Gross profit Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses Total divisional selling and administrative expenses Income from operations before service department charges Service department charges: Advertising expense Transportation expense Accounts receivable collection expense Warahnlice evnance Type here to search O 10:22 PM 4 8/9/2021P ) My Collection - Static X CengageNOWv2 | Online | X The Consumer Division of X Course Hero x > The Central Division of Ch X + X C @ https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false . . Ch. 24, Quiz B warehouse experts Total service department charges Income from operations Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Glades Sporting Goods Co. Service Department Charges For the Year Ended December 31, 20Y8 Winter Sports Division Summer 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 tA Warehouse rate per sq. ft. OneDrive ... X Number of square feet Screenshot saved Warehouse expense $ The screenshot was added to your OneDrive. 10:22 PM Type here to search 4 84OF 8/9/2021
