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, 2049, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales-Winter Sports Division $28,350,000 Sales-Summer Sports Division 31,320,000 Cost of Goods Sold-Winter Sports Division 17,010,000 Cost of Goods Sold-Summer Sports Division 18,090,000 Sales Expense-Winter Sports Division 4,860,000 Sales Expense-Summer Sports Division 4,320,000 Administrative Expense-Winter Sports Division 2,835,000 Administrative Expense-Summer Sports Division 2,781,000 Advertising Expense 961,000 Transportation Expense 362,400 Accounts Receivable Collection Expense 203,700 Warehouse Expense 2,700,000 > 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, $451,000; Summer Sports Division, $510,000. b. Transportation expense-allocated to divisions at a rate of $12 per bill of lading: Winter Sports Division, 14,400 bills of lading: Summer Sports Division, 15,800 bills of lading. C. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $7 per invoice: Winter Sports Division, 13,400 sales invoices; Summer Sports Division, 15,700 sales 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. Check My Work Previous Assignment Score: 0.0% Save and Exit Submit Assignment for Grading sales 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. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 2049 Winter Sports Division Summer Sports Division Sales Cost of goods sold Gross profit Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses 1000 000) Qull Total divisional selling and administrative expenses DI Up 2.0 Operating income before support department allocations Support department allocations: Advertising expense Transportation expense Accounts receivable collection expense Warehouse expense Check My Work Previous Assignment Score: 0.0% Save and Exit Submit Assignment for Grading Warehouse expense Total support department allocations bu DOL Operating income 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, 2049 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. juin Number of square feet Warehouse expense $ Check My Work Previous Assignment Score: 0.0% Save and Exit Submit Assignment for Grading
