Profit center responsibility reporting

Championship Sports Inc. operates two divisions$$the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December $31,20$Y$9,$ the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

Sales$$Winter Sports Division $$9,400,000$

Sales$$Summer Sports Division $15,000,000$

Cost of Goods Sold$$Winter Sports Division $5,500,000$

Cost of Goods Sold$$Summer Sports Division $8,300,000$

Sales Expense$$Winter Sports Division $650,000$

Sales Expense$$Summer Sports Division $1,000,000$

Administrative Expense$$Winter Sports Division $720,000$

Administrative Expense$$Summer Sports Division $1,380,000$

Advertising Expense $1,029,000$

Transportation Expense $291,000$

Accounts Receivable Collection Expense $144,000$

Warehouse Expense $936,000$

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

Advertising expense$$incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $$316,000$; Summer Sports Division, $$713,000.$

Transportation expense$$charged back to divisions at a charge rate of $$6\mathrm{.}00$ per bill of lading: Winter Sports Division, $18,500$ bills of lading; Summer Sports Division, $30,000$ bills of lading.

Accounts receivable collection expense$$incurred at headquarters, charged back to divisions at a charge rate of $$2\mathrm{.}00$ per invoice: Winter Sports Division, $27,000$ sales invoices; Summer Sports Division, $45,000$ sales invoices.

Warehouse expense$$charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, $70,000$ square feet; Summer Sports Division, $86,000$ square feet.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your intermediate calculations.

Championship Sports Inc.

Divisional Income Statements

For the Year Ended December $31,20$Y$9$

Winter Sports Division Summer Sports Division

Sales $fill in the blank $2$

$fill in the blank $3$

Cost of goods sold fill in the blank $4$

fill in the blank $5$

Gross profit $fill in the blank $6$

$fill in the blank $7$

Divisional selling and administrative expenses:

Divisional selling expenses $fill in the blank $8$

$fill in the blank $9$

Divisional administrative expenses fill in the blank $10$

fill in the blank $11$

Total divisional selling and administrative expenses $fill in the blank $12$

$fill in the blank $13$

Operating income before support department allocations $fill in the blank $14$

$fill in the blank $15$

Support department allocations:

Advertising expense $fill in the blank $16$

$fill in the blank $17$

Transportation expense fill in the blank $18$

fill in the blank $19$

Accounts receivable collection expense fill in the blank $20$

fill in the blank $21$

Warehouse expense fill in the blank $22$

fill in the blank $23$

Total support department allocations $fill in the blank $24$

$fill in the blank $25$

Operating income $fill in the blank $26$

$fill in the blank $27$

Provide supporting computations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.

Championship Sports Inc.

Support Department Allocations

For the Year Ended December $31,20$Y$9$

Winter Sports Division Summer Sports Division Total

Advertising expense $fill in the blank $28$

$fill in the blank $29$

$fill in the blank $30$

Transportation rate per bill of lading $fill in the blank $31$

$fill in the blank $32$

Number of bills of lading fill in the blank $33$

fill in the blank $34$

Transportation expense $fill in the blank $35$

$fill in the blank $36$

$fill in the blank $37$

Accounts receivable collection rate $fill in the blank $38$

$fill in the blank $39$

Number of sales invoices fill in the blank $40$

fill in the blank $41$

Accounts receivable collection expense $fill in the blank $42$

$fill in the blank $43$

$fill in the blank $44$

Warehouse rate per sq$.$ ft$.$ $fill in the blank $45$

$fill in the blank $46$

Number of square feet fill in the blank $47$

fill in the blank $48$

Warehouse expense $fill in the blank $49$

$fill in the blank $50$

$fill in the blank $51$