Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

help! Profit center responsibility reporting Championship Sports Inc, operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expenise accounts

help! image text in transcribed
image text in transcribed
image text in transcribed
Profit center responsibility reporting Championship Sports Inc, operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expenise accounts were provided from the trial balance as of December-31, 20Y9, the end of the fiscal year, after all adjustments, including those for itventories, were. recorded and posted: The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expense-incurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, 5484 ,000; Surnmer Sports Division, $547,000. b. Transportation expenise-allocated to divisions at a rate of $18 per bill of lading: Winter Sports Division, 15,600 bills of lading; Summer Sports Division, 17,200 bills of lading. e. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $6 per invoice: Winter 5 ports Division, 14 , 500 -sales invoices; Summer Sports Division, 17,000 sales invoices. b. Transportation expense-allocated to divisions at a rate of 518 per bill of lading: Winter Sports Division, 15,600 bills of fading: Summer Sports Division, 17,200 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $8 per invoice: Winter Sports Division, 14,500 sales invoices: Summer Sports Division, 17,000 soles invoices. d. Warehouse expense-allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 160,000 square feet; Summer Sports Division, 200,000 square feet Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. rovide supporting computations for support department aliocations: If required, round per unit amounts to two decimal places and final answers o the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions