Question Content Area Profit center responsibility reporting Championship Sports Inc 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, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted Line Item Description Amount SalesWinter Sports Division $23,625,000 SalesSummer Sports Division 26,100,000 Cost of Goods SoldWinter Sports Division 14,175,000 Cost of Goods SoldSummer Sports Division 15,075,000 Sales ExpenseWinter Sports Division 4,050,000 Sales ExpenseSummer Sports Division 3,600,000 Administrative ExpenseWinter Sports Division 2,362,500 Administrative ExpenseSummer Sports Division 2,317,500 Advertising Expense 1,093,000 Transportation Expense 494,400 Accounts Receivable Collection Expense 207,900 Warehouse Expense 2,250,000 The bases to be used in allocating expenses, together with other information, are as follows Advertising expenseincurred at headquarters, allocated to divisions on the basis of usage Winter Sports Division, $513,000 Summer Sports Division, $580,000 Transportation expenseallocated to divisions at a rate of $16 per bill of lading Winter Sports Division, 14,700 bills of lading Summer Sports Division, 16,200 bills of lading Accounts receivable collection expenseincurred at headquarters, allocated to divisions at a rate of $7 per invoice Winter Sports Division, 13,700 sales invoices Summer Sports Division, 16,000 sales invoices Warehouse expenseallocated to divisions on the basis of floor space used in storing division products Winter Sports Division, 130,000 square feet Summer Sports Division, 170,000 square feet Question Content Area Prepare a divisional income statement with two column headings Winter Sports Division and Summer Sports Division Do not round your interim calculations Line Item Description Winter Sports Division Summer Sports Division Sales $Sales $Sales Cost of goods sold Cost of goods sold Cost of goods sold Gross profit $Gross profit $Gross profit Divisional selling and administrative expenses blank blank Divisional selling expenses $Divisional selling expenses $Divisional selling expenses Divisional administrative expenses Divisional administrative expenses Divisional administrative expenses Total divisional selling and administrative expenses $Total divisional selling and administrative expenses $Total divisional selling and administrative expenses Operating income before support department allocations $Operating income before support department allocations $Operating income before support department allocations Support department allocations Advertising expense $Advertising expense $Advertising expense Transportation expense Transportation expense Transportation expense Accounts receivable collection expense Accounts receivable collection expense Accounts receivable collection expense Warehouse expense Warehouse expense Warehouse expense Total support department allocations $Total support department allocations $Total support department allocations Operating income $Operating income $Operating income Question Content Area Provide supporting computations for support department allocations If required, round per unit amounts to two decimal places and final answers to the nearest dollar Line Item Description Winter Sports Division Summer Sports Division Total Advertising expense $Advertising expense $Advertising expense $Advertising expense Transportation rate per bill of lading $Transportation rate per bill of lading $Transportation rate per bill of lading Number of bills of lading Number of bills of lading Number of bills of lading Transportation expense $Transportation expense $Transportation expense $Transportation expense Accounts receivable collection rate $Accounts receivable collection rate $Accounts receivable collection rate Number of sales invoices Number of sales invoices Number of sales invoices Accounts receivable collection expense $Accounts receivable collection expense $Accounts receivable collection expense $Accounts receivable collection expense Warehouse rate per sq ft $Warehouse rate per sq ft $Warehouse rate per sq ft Number of square feet Number of square feet Number of square feet Warehouse expense $Warehouse expense $Warehouse expense $Warehouse expense

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Question Content Area Profit center responsibility reporting Championship Sports Inc. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and

Question Content Area

Profit center responsibility reporting

Championship Sports Inc. 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, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

Line Item Description	Amount
SalesWinter Sports Division	$23,625,000
SalesSummer Sports Division	26,100,000
Cost of Goods SoldWinter Sports Division	14,175,000
Cost of Goods SoldSummer Sports Division	15,075,000
Sales ExpenseWinter Sports Division	4,050,000
Sales ExpenseSummer Sports Division	3,600,000
Administrative ExpenseWinter Sports Division	2,362,500
Administrative ExpenseSummer Sports Division	2,317,500
Advertising Expense	1,093,000
Transportation Expense	494,400
Accounts Receivable Collection Expense	207,900
Warehouse Expense	2,250,000

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

Advertising expenseincurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $513,000; Summer Sports Division, $580,000.
Transportation expenseallocated to divisions at a rate of $16 per bill of lading: Winter Sports Division, 14,700 bills of lading; Summer Sports Division, 16,200 bills of lading.
Accounts receivable collection expenseincurred at headquarters, allocated to divisions at a rate of $7 per invoice: Winter Sports Division, 13,700 sales invoices; Summer Sports Division, 16,000 sales invoices.
Warehouse expenseallocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 130,000 square feet; Summer Sports Division, 170,000 square feet.

Question Content Area

Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations.

Line Item Description	Winter Sports Division	Summer Sports Division
Sales	$Sales	$Sales
Cost of goods sold	Cost of goods sold	Cost of goods sold
Gross profit	$Gross profit	$Gross profit
Divisional selling and administrative expenses:	blank	blank
Divisional selling expenses	$Divisional selling expenses	$Divisional selling expenses
Divisional administrative expenses	Divisional administrative expenses	Divisional administrative expenses
Total divisional selling and administrative expenses	$Total divisional selling and administrative expenses	$Total divisional selling and administrative expenses
Operating income before support department allocations	$Operating income before support department allocations	$Operating income before support department allocations
Support department allocations:
Advertising expense	$Advertising expense	$Advertising expense
Transportation expense	Transportation expense	Transportation expense
Accounts receivable collection expense	Accounts receivable collection expense	Accounts receivable collection expense
Warehouse expense	Warehouse expense	Warehouse expense
Total support department allocations	$Total support department allocations	$Total support department allocations
Operating income	$Operating income	$Operating income

Question Content Area

Provide supporting computations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.

Line Item Description	Winter Sports Division	Summer Sports Division	Total
Advertising expense	$Advertising expense	$Advertising expense	$Advertising expense
Transportation rate per bill of lading	$Transportation rate per bill of lading	$Transportation rate per bill of lading
Number of bills of lading	Number of bills of lading	Number of bills of lading
Transportation expense	$Transportation expense	$Transportation expense	$Transportation expense
Accounts receivable collection rate	$Accounts receivable collection rate	$Accounts receivable collection rate
Number of sales invoices	Number of sales invoices	Number of sales invoices
Accounts receivable collection expense	$Accounts receivable collection expense	$Accounts receivable collection expense	$Accounts receivable collection expense
Warehouse rate per sq. ft.	$Warehouse rate per sq. ft.	$Warehouse rate per sq. ft.
Number of square feet	Number of square feet	Number of square feet
Warehouse expense	$Warehouse expense	$Warehouse expense	$Warehouse expense