Profit Center Responsibility Reporting

Glades Sporting Goods Co. 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

SalesWinter Sports Division	$12,600,000
SalesSummer Sports Division	16,300,000
Cost of Goods SoldWinter Sports Division	7,560,000
Cost of Goods SoldSummer Sports Division	9,454,000
Sales ExpenseWinter Sports Division	2,016,000
Sales ExpenseSummer Sports Division	2,282,000
Administrative ExpenseWinter Sports Division	1,260,000
Administrative ExpenseSummer Sports Division	1,450,700
Advertising Expense	578,000
Transportation Expense	265,660
Accounts Receivable Collection Expense	174,000
Warehouse Expense	1,540,000

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

1. Advertising expenseincurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $252,000; Summer Sports Division, $326,000.
2. Transportation expenseallocated to divisions at an allocation rate of $7.40 per bill of lading: Winter Sports Division, 17,200 bills of lading; Summer Sports Division, 18,700 bills of lading.
3. Accounts receivable collection expenseincurred at headquarters, allocated to divisions at an allocation rate of $6.00 per invoice: Winter Sports Division, 11,500 sales invoices; Summer Sports Division, 17,500 sales invoices.
4. Warehouse expenseallocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 102,000 square feet; Summer Sports Division, 118,000 square feet.

Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required.

Glades Sporting Goods Co. Divisional Income Statements For the Year Ended December 31, 2048 Winter Sports Summer Sports Division Division Sales Cost of goods sold Gross profit Divisional selling expenses Divisional administrative expenses Total divisional 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 Division Division Provide supporting calculations for 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. Supporting Calculations For the Year Ended December 31, 2048 Winter Sports Summer Sports 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. Number of square feet Warehouse expense