Profit Center Responsibility Reporting XSport 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, 20Y9, 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 The bases to be used in allocating expenses, together with other essential information, are as follows a. Advertising expense-incurred at headquarters, charged back to divisions on the basis of usage: Winter $24,255,000o 26,796,000 14,553,000 15,477,000 4,158,000 3,696,000 2,425,500 2,379,300 1,031,000 417,200 257,400 2,310,000 Sports Division, $484,000; Summer Sports Division, $547,000 Division, 14,200 bills of lading: Summer Sports Division, 15,600 bills of lading rate of $9 per invoice: Winter Sports Division, 13,200 sales invoices; Summer Sports Division, 15,400 sales b. Transportation expense-charged back to divisions at a charge rate of $14 per bill of lading:Winter Sports C. Accounts receivable collection expense-incurred at headquarters, charged back to divisions at a charge invoices. d. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 120,000 square feet; Summer Sports Division, 160,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. XSport Sporting Goods Co. Check My Work Previous Next