rofit ceater responsibity reporting hampionship Sports Inc. operates two divisians-the Winter Sports Division and the Summer Sports Division, The following income and expense accounts were grovided om the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, induding those for inventarles, were recorded and posted: 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, $491,000; $ ammer 5 parts Division, 5555 , oc0. 6. Transportation expense-allocated to divisions at a rate of $17 per bill of lading: Winter Sports Division, 14,600 bilts of lading; Summer Sports Divisien, 16,100 bills of lading c. Accounts receivabie collection expense-incurred at headquarters, allocated to divisions at a rate of 58 per invoico: Winter Sports Division, 13,600 sales invaices; Summer Sports Division, 15, 900 sales invoices. d. Warehouse expente-allocated to divisions on the basis of foor spsce used in storing division products: Winter 5 ports Division, 150 ,000 squere feet; Summer Sparts Division, 190,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division, Do not round your interim caleulations. Championship Sports Inc. rovide supporting computations for support department allocations, If required, round per unit amounts to two decimal places and final answers to the rofit ceater responsibity reporting hampionship Sports Inc. operates two divisians-the Winter Sports Division and the Summer Sports Division, The following income and expense accounts were grovided om the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, induding those for inventarles, were recorded and posted: 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, $491,000; $ ammer 5 parts Division, 5555 , oc0. 6. Transportation expense-allocated to divisions at a rate of $17 per bill of lading: Winter Sports Division, 14,600 bilts of lading; Summer Sports Divisien, 16,100 bills of lading c. Accounts receivabie collection expense-incurred at headquarters, allocated to divisions at a rate of 58 per invoico: Winter Sports Division, 13,600 sales invaices; Summer Sports Division, 15, 900 sales invoices. d. Warehouse expente-allocated to divisions on the basis of foor spsce used in storing division products: Winter 5 ports Division, 150 ,000 squere feet; Summer Sparts Division, 190,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division, Do not round your interim caleulations. Championship Sports Inc. rovide supporting computations for support department allocations, If required, round per unit amounts to two decimal places and final answers to the
