Profit Center Responsibility Reporting

Championship Sports Inc. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

SalesWinter Sports Division$31,080,000SalesSummer Sports Division34,336,000Cost of Goods SoldWinter Sports Division18,648,000Cost of Goods SoldSummer Sports Division19,832,000Sales ExpenseWinter Sports Division5,328,000Sales ExpenseSummer Sports Division4,736,000Administrative ExpenseWinter Sports Division3,108,000Administrative ExpenseSummer Sports Division3,048,800Advertising Expense980,000Transportation Expense432,000Accounts Receivable Collection Expense193,200Warehouse Expense2,960,000

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

1. Advertising expenseincurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $460,000; Summer Sports Division, $520,000.
2. Transportation expenseallocated to divisions at a rate of $15 per bill of lading: Winter Sports Division, 13,700 bills of lading; Summer Sports Division, 15,100 bills of lading.
3. Accounts receivable collection expenseincurred at headquarters, allocated to divisions at a rate of $7 per invoice: Winter Sports Division, 12,700 sales invoices; Summer Sports Division, 14,900 sales invoices.
4. Warehouse expenseallocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 140,000 square feet; Summer Sports Division, 180,000 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, 20Y9
	Winter Sports Division	Summer Sports Division
Sales	$fill in the blank 17ffbf030040f94_1	$fill in the blank 17ffbf030040f94_2
Cost of goods sold	fill in the blank 17ffbf030040f94_3	fill in the blank 17ffbf030040f94_4
Gross profit	$fill in the blank 17ffbf030040f94_5	$fill in the blank 17ffbf030040f94_6
Divisional selling and administrative expenses:
Divisional selling expenses	$fill in the blank 17ffbf030040f94_7	$fill in the blank 17ffbf030040f94_8
Divisional administrative expenses	fill in the blank 17ffbf030040f94_9	fill in the blank 17ffbf030040f94_10
Total divisional selling and administrative expenses	$fill in the blank 17ffbf030040f94_11	$fill in the blank 17ffbf030040f94_12
Operating income before support department allocations	$fill in the blank 17ffbf030040f94_13	$fill in the blank 17ffbf030040f94_14
Support department allocations:
Advertising expense	$fill in the blank 17ffbf030040f94_15	$fill in the blank 17ffbf030040f94_16
Transportation expense	fill in the blank 17ffbf030040f94_17	fill in the blank 17ffbf030040f94_18
Accounts receivable collection expense	fill in the blank 17ffbf030040f94_19	fill in the blank 17ffbf030040f94_20
Warehouse expense	fill in the blank 17ffbf030040f94_21	fill in the blank 17ffbf030040f94_22
Total support department allocations	$fill in the blank 17ffbf030040f94_23	$fill in the blank 17ffbf030040f94_24
Operating income	$fill in the blank 17ffbf030040f94_25	$fill in the blank 17ffbf030040f94_26

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, 20Y9

Winter Sports Division	Summer Sports Division	Total
Advertising expense	$fill in the blank 9ebb6df98069fc3_1	$fill in the blank 9ebb6df98069fc3_2	$fill in the blank 9ebb6df98069fc3_3
Transportation rate per bill of lading	$fill in the blank 9ebb6df98069fc3_4	$fill in the blank 9ebb6df98069fc3_5
Number of bills of lading	fill in the blank 9ebb6df98069fc3_6	fill in the blank 9ebb6df98069fc3_7
Transportation expense	$fill in the blank 9ebb6df98069fc3_8	$fill in the blank 9ebb6df98069fc3_9	$fill in the blank 9ebb6df98069fc3_10
Accounts receivable collection rate	$fill in the blank 9ebb6df98069fc3_11	$fill in the blank 9ebb6df98069fc3_12
Number of sales invoices	fill in the blank 9ebb6df98069fc3_13	fill in the blank 9ebb6df98069fc3_14
Accounts receivable collection expense	$fill in the blank 9ebb6df98069fc3_15	$fill in the blank 9ebb6df98069fc3_16	$fill in the blank 9ebb6df98069fc3_17
Warehouse rate per sq. ft.	$fill in the blank 9ebb6df98069fc3_18	$fill in the blank 9ebb6df98069fc3_19
Number of square feet	fill in the blank 9ebb6df98069fc3_20	fill in the blank 9ebb6df98069fc3_21
Warehouse expense	$fill in the blank 9ebb6df98069fc3_22	$fill in the blank 9ebb6df98069fc3_23	$fill in the blank 9ebb6df98069fc3_24