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: Sales-Winter Sports Division $33,600,000 37,120,000 Sales-Summer Sports Division Cost of Goods Sold-Winter Sports Division 20,160,000 Cost of Goods Sold-Summer Sports Division 21,440,000 Sales Expense-Winter Sports Division 5,760,000 Sales Expense-Summer Sports Division 5,120,000 Administrative Expense-Winter Sports Division 3,360,000 Administrative Expense-Summer Sports Division 3,296,000 Advertising Expense 937,000 Transportation Expense 422,800 261,900 3,200,000 Accounts Receivable Collection Expense Warehouse Expense The bases to be used in allocating 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, $440,000; Summer Sports Division, $497,000. b. Transportation expense-allocated to divisions at a rate of $14 per bill of lading: Winter Sports Division, 14,400 bills of lading; Summer Sports Division, 15,800 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $9 per invoice: Winter Sports Division, 13,400 sales invoices; Summer Sports Division, 15,700 sales invoices. d. Warehouse expense-allocated to divisions on the basis of floor ace used in storing division products: Winter Sports Division, 180,000 square feet; Summer Sports Division, 220,000 square feet.

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 31,20T, the end of the fiscal vear, after all adjustments, inciuding those for inventories. wern recorded and posted: The boses to be used in allocating expenses, together with other information, are as follows: 9. Advertising expense-incurred at headquarters, abocated to divisions on the basis of usaget Winter 5ports 0ivision, s440,000; Summer 5ports Divivion, S497,000. 2. Transportation expense-allocated to divisions at a rate of $14 per bill of lading: Winter Sports Division, 14,400 bills of lading: 5 ummer $ ports 0ivision, 15 , foo bills of lading. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $9 per inyoice: Winter 5ports0ivision,13,400 sales invices, Summer Sports Division, 15,700 sales invoices. Warehouse expense-allocated to divisions on the basis of floor space used in storing division products: Winter Sports Divison. 1ao,ooo square feet; Summer Sports Division, 220,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division, Do not round your interim calculations. Championship Sports Inc. Divisional Income statements For the Year Ended December 31, 20y9 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 Warehouse expense Total support department allocations Operating income Summer Sports Division Provide supporting schedules for determining support department allocations, If required, round per unit amounts to two decimal places and final answers to the nearest dollar