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:

SalesWinter Sports Division	$31,237,500
SalesSummer Sports Division	34,510,000
Cost of Goods SoldWinter Sports Division	18,742,500
Cost of Goods SoldSummer Sports Division	19,932,500
Sales ExpenseWinter Sports Division	5,355,000
Sales ExpenseSummer Sports Division	4,760,000
Administrative ExpenseWinter Sports Division	3,123,800
Administrative ExpenseSummer Sports Division	3,064,300
Advertising Expense	969,000
Transportation Expense	370,800
Accounts Receivable Collection Expense	237,600
Warehouse Expense	2,975,000

The bases to be used in allocating expenses, together with other essential information, are as follows:

1. Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $455,000; Summer Sports Division, $514,000.
2. Transportation expensecharged back to divisions at a charge rate of $12 per bill of lading: Winter Sports Division, 14,700 bills of lading; Summer Sports Division, 16,200 bills of lading.
3. Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of $8 per invoice: Winter Sports Division, 13,700 sales invoices; Summer Sports Division, 16,000 sales invoices.
4. Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 150,000 square feet; Summer Sports Division, 190,000 square feet.

Question Content Area

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
Warehouse expense
Total service department charges
Income from operations

Question Content Area

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
Warehouse rate per sq. ft.
Number of square feet
Warehouse expense