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 $31,20Y,$ the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

Sales$-$Winter Sports Division

Sales$-$Summer Sports Division

Cost of Goods Sold$-$Winter Sports Division

Cost of Goods Sold$-$Summer Sports Division

Sales Expense$-$Winter Sports Division

Sales Expense$-$Summer Sports Division

Administrative Expense$-$Winter Sports Division

Administrative Expense$-$Summer Sports Division

Advertising Expense

Transportation Expense

Accounts Receivable Collection Expense

Warehouse Expense

$$26,775,000$

$29,580,000$

$16,065,000$

$17,085,000$

$4,590,000$

$4,080,000$

$2,677,500$

$2,626,500$

$1,097,000$

$357,600$

$228,800$

$2,550,000$

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, $$515,000$; Summer Sports Division, $$582,000.$

b$.$ Transportation expense$-$allocated to divisions at a rate of $$12$ per bill of lading: Winter Sports Division, $14,200$ bills of lading; Summer Sports Division, $15,600$ bills of

lading.

c$.$ Accounts receivable collection expense$-$incurred at headquarters, allocated to divisions at a rate of $$8$ per invoice: Winter Sports Division, $13,200$ sales invoices;

Summer Sports Division, $15,400$ sales invoices.

d$.$ Warehouse expense$-$allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, $130,000$ square feet; Summer Sports

Division, $170,000$ square feet.

Prepare a divisional income statement with two column headings: Winter Sports Division and Summ er Sports Division. Do not round your interim calculations.Championship Sports Inc.

Divisional Income Statements

For the Year Ended December $31,20$ Y$9$Championship Sports Inc.

Divisional Income Statements

For the Year Ended December $31,20$ Y$9$Provide supporting schedules for determining 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$9$

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