XSport Sporting Goods Cooperates 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, 2019, the end of the fiscal year, after all adjustments, including those for inventories were recorded and posted $10,525,000 13,610,000 6,280.000 7,868,000 1.650.000 Sales-Winter Sports Division Sales Summer Sports Division Cost of Goods Sold-Winter Sports Division Cost of Goods Sold-Summer Sports Division Sales expense-Winter Sports Division Sales expense-Summer Sports Division Administrative Expense --Winter Sports Division Administrative Expense-Summer Sports Division Advertising Expense Transportation Expense Accounts Receivable Collection Expense Warehouse Expense 1,894,000 1.002,000 1.204,400 479,000 144,500 120,400 1.154,000 The bases to be used in allocating expenses, together with other essential information are as follows: A. Advertising expense incurred at headquarters charged back to divisions on the basis of usage: Winter Sports Division, $216,300: Summer Sports Division, $262.700. B. Transportation expense-charged back to divisions at a charge rate of $5 per bill of lading Winter Sports Division, 13.400 bits of lading, Summer Sports Division 15,600 bills of lading C Accounts receivable collection expense - incurred at headquarters, charged back to divnions at a charge rate of 55 per involo Winter Sports Dision, 9,850 sales involves: Summer Sports Division 14.490 sales invoices D. Warehouse expense-charped back to divisions on the basis of floor space used in storing division products: Winter Sports Division 1.000 square feet Summer Sports Division, 103,000 square feet Required: 1. Prepare a dional income statement with no column wings: Wer Sports Division and Summer Sports Diskon Hofer to the stor Label and Amount Descriptions for the exact wording of the answer choices for text entries (Complete the supporting Calculations DJA colon ( www in where needed 2. Provide supporting calculations for service department charges Profit center responsibility reporting Instructions Labels and Amount Descriptions Divisional Income Statements Supporting Calculations Divisional Income Statements Division Division 2 3 4 I 5 Label 7 8 9 10 be 11 12 14 14 15 16 2. Provide supporting calculations for service department charges. Service Department Charges Total Winter Sports Division Summer Sports Division s 5 Advertising expense Transportation rate per bill of lading Number of bas of lading S is S Transportation expense $ $ Accounts receivable collection rate Number of sales invoices $ Accounts receivable collection expenses Warehouse rate per sq.ft Number of square feet Warehouse expense
