Profit Center Responsibility Reporting Glades Sporting Goods Co. operates two divisions the Winter Sports Division and...

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Profit Center Responsibility Reporting Glades Sporting Goods Co. 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, 2018, 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 $31,920,000 35,264,000 19,152,000 Cost of Goods Sold-Summer Sports Division Sales Expense-Winter Sports Division 20,368,000 5,472,000 Sales Expense-Summer Sports Division 4,864,000 Administrative Expense- Winter Sports Division 3,192,000 Administrative Expense Summer Sports Division 3,131,200 Advertising Expense 903,000 Transportation Expense 549,100 Accounts Receivable Collection Expense Warehouse Expense 248,000 3,040,000 The bases to be used in allocating expenses, together with other essential information, are as follows: a. Advertising expense-incurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $424,000; Summer Sports Division, $479,000. b. Transportation expense-allocated to divisions at an allocation rate of $17 per bill of lading: Winter Sports Division, 15,400 bills of lading; Summer Sports Division, 16,900 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at an allocation rate of $8 per invoice: Winter Sports Division, 14,300 sales invoices; Summer Sports Division, 16,700 sales invoices. d. Warehouse expense-allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 170,000 square feet; Summer Sports Division, 210,000 square feet. Sales Glades Sporting Goods Co. Divisional Income Statements. For the Year Ended December 31, 20Y8. Winter Sports Summer Sports Division 31,920,000 Division 35,264,000 Cost of goods sold 19.152,000 20,368,000 Gross profit 12,768,000 14,896,000 Divisional selling and administrative expenses: 5,472,000 4,864,000 3,192,000 3,131,200 8,664,000 7,995,200 Divisional selling expenses Divisional administrative expenses Total divisional selling and administrative expenses Income from operations before service department allocations Less service department cost allocations: Advertising expense Transportation expense Accounts receivable collection expense Warehouse expense Total Income from operations Provide supporting schedules for determining service department cost allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Glades Sporting Goods Co. Service Department Charges For the Year Ended December 31, 20YS 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 Winter Sports Division Summer Sports Division 100000 100000 Total 10 0 0 0 Profit Center Responsibility Reporting Glades Sporting Goods Co. 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, 2018, 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 $31,920,000 35,264,000 19,152,000 Cost of Goods Sold-Summer Sports Division Sales Expense-Winter Sports Division 20,368,000 5,472,000 Sales Expense-Summer Sports Division 4,864,000 Administrative Expense- Winter Sports Division 3,192,000 Administrative Expense Summer Sports Division 3,131,200 Advertising Expense 903,000 Transportation Expense 549,100 Accounts Receivable Collection Expense Warehouse Expense 248,000 3,040,000 The bases to be used in allocating expenses, together with other essential information, are as follows: a. Advertising expense-incurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $424,000; Summer Sports Division, $479,000. b. Transportation expense-allocated to divisions at an allocation rate of $17 per bill of lading: Winter Sports Division, 15,400 bills of lading; Summer Sports Division, 16,900 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at an allocation rate of $8 per invoice: Winter Sports Division, 14,300 sales invoices; Summer Sports Division, 16,700 sales invoices. d. Warehouse expense-allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 170,000 square feet; Summer Sports Division, 210,000 square feet. Sales Glades Sporting Goods Co. Divisional Income Statements. For the Year Ended December 31, 20Y8. Winter Sports Summer Sports Division 31,920,000 Division 35,264,000 Cost of goods sold 19.152,000 20,368,000 Gross profit 12,768,000 14,896,000 Divisional selling and administrative expenses: 5,472,000 4,864,000 3,192,000 3,131,200 8,664,000 7,995,200 Divisional selling expenses Divisional administrative expenses Total divisional selling and administrative expenses Income from operations before service department allocations Less service department cost allocations: Advertising expense Transportation expense Accounts receivable collection expense Warehouse expense Total Income from operations Provide supporting schedules for determining service department cost allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Glades Sporting Goods Co. Service Department Charges For the Year Ended December 31, 20YS 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 Winter Sports Division Summer Sports Division 100000 100000 Total 10 0 0 0