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Protit center responsibility reporting Championship Sports Inc. operates two divisions-the Winter Sports Division and the Summer 5ports Division. The following incorne and expense accounts were
Protit center responsibility reporting Championship Sports Inc. operates two divisions-the Winter Sports Division and the Summer 5ports Division. The following incorne 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 bases to be used in allocating expenses, together with other inforination. are as follows: a. Advertising expense-incurred at headquarters, charged back to divislonis on the basis of usage: Winter Sports Division, $329,000 : Surmer Sporte Division, $728,000 b. Trancportation expense-charged back to dlvisions at a charge rate of $6.00 per bil of lading; Winter Sports bivision. 19,000 bills of lading: Surmenef. Sports Division, 34,500 bills of lading. Division, $728,000. b. Transportation expense - charged back to divisions at a charge mate of $6.00 per bill of lading: Winter sports Division, 19, 000 bills of tading: 54 ummer Sports Division, 34,500 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, charged back to divisions at a charge rate of $1.00 per irivoice: Winter Sports Division, 26,000 sales, invoices, Summer Sports Division, 43,000 sales invoiceis. d. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Winter sports Division, 51,900 square feet; Summer 5 ports Division, 82,000 square feet. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadshet Prepare a divisional income statement with two column headinos: Winter Sports Division and Summer Sports Division. Do riot round your intermediate calculations. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20 Y9 Sales Cost of goods sold Gross profit Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses Total divisional selling and administrative expenses Operating income before support department allocations Support department allocations: Advertising expense Transportation expense Accounts receivable collection expense Provide supporting computations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the hearest dollar
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