Prolit center responsiblity 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 31,20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: The bages to be used in aliocating 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; $375,000; Summer Sports Division, $715,000. b. Transportation expense-allocated to divisions at a rate of 54,00 per bill of iading: Winter Sports Division, 17,500 bills of lading; 5 immer 5p0 prts Division, 30,500 bills of lading e. Accounts receivabie collection expense-incured ot hehdquarters, allocated to divisions at a raie of $1.00 per invoice: Winter 500pt Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices. a. Warehouse expence-alocated to divhiens on the basis of noor spece used in storing division products: Winter 5ports Division, 60,000 square feet; Summer 5ports Oivison, 90.000 squere feet. Prepare a diviora income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20 Y9 Line Item Description Sales Cost of goods sold Gross profit Oivisional selling and administrative expenses: Divisional selling expenses Oivisional administrotive expenses Total divisional selling and administrative expenses Operating income before support department allocations Sports Summer Sports Support departmeot allocabionsi Advertising expense Trantiortation expense Accounts recelvable collection expense Warehouse expenst Provide supporting computations for 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 Prolit center responsiblity 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 31,20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: The bages to be used in aliocating 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; $375,000; Summer Sports Division, $715,000. b. Transportation expense-allocated to divisions at a rate of 54,00 per bill of iading: Winter Sports Division, 17,500 bills of lading; 5 immer 5p0 prts Division, 30,500 bills of lading e. Accounts receivabie collection expense-incured ot hehdquarters, allocated to divisions at a raie of $1.00 per invoice: Winter 500pt Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices. a. Warehouse expence-alocated to divhiens on the basis of noor spece used in storing division products: Winter 5ports Division, 60,000 square feet; Summer 5ports Oivison, 90.000 squere feet. Prepare a diviora income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20 Y9 Line Item Description Sales Cost of goods sold Gross profit Oivisional selling and administrative expenses: Divisional selling expenses Oivisional administrotive expenses Total divisional selling and administrative expenses Operating income before support department allocations Sports Summer Sports Support departmeot allocabionsi Advertising expense Trantiortation expense Accounts recelvable collection expense Warehouse expenst Provide supporting computations for 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
