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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! 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
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