Homework Help is Here – Start Your Trial Now!
Business
Accounting
Profit Center Responsibility 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 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 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, $465,000; Summer Sports Division, $525,000. b. Transportation expense-allocated to divisions at a rate of $16 per bill of lading: Winter Sports Division, 15,600 bills of lading; Summer Sports Division, 17,200 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $8 per invoice: Winter Sports Division, 14,500 sales invoices; Summer Sports Division, 17,000 sales invoices. d. Warehouse expense-allocated 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. $28,350,000 31,320,000 17,010,000 18,090,000 4,860,000 4,320,000 2,835,000 2,781,000 990,000 524,800 252,000 2,700,000

Profit Center Responsibility 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 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 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, $465,000; Summer Sports Division, $525,000. b. Transportation expense-allocated to divisions at a rate of $16 per bill of lading: Winter Sports Division, 15,600 bills of lading; Summer Sports Division, 17,200 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $8 per invoice: Winter Sports Division, 14,500 sales invoices; Summer Sports Division, 17,000 sales invoices. d. Warehouse expense-allocated 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. $28,350,000 31,320,000 17,010,000 18,090,000 4,860,000 4,320,000 2,835,000 2,781,000 990,000 524,800 252,000 2,700,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Profit Center Responsibility 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 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 $28,350,000 31,320,000 17,010,000 18,090,000 4,860,000 4,320,000 2,835,000 2,781,000 990,000 524,800 252,000 2,700,000 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, $465,000; Summer Sports Division, $525,000. b. Transportation expense-allocated to divisions at a rate of $16 per bill of lading: Winter Sports Division, 15,600 bills of lading; Summer Sports Division, 17,200 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $8 per invoice: Winter Sports Division, 14,500 sales invoices; Summer Sports Division, 17,000 sales invoices. d. Warehouse expense-allocated 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.
Transcribed Image Text:Profit Center Responsibility 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 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 $28,350,000 31,320,000 17,010,000 18,090,000 4,860,000 4,320,000 2,835,000 2,781,000 990,000 524,800 252,000 2,700,000 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, $465,000; Summer Sports Division, $525,000. b. Transportation expense-allocated to divisions at a rate of $16 per bill of lading: Winter Sports Division, 15,600 bills of lading; Summer Sports Division, 17,200 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $8 per invoice: Winter Sports Division, 14,500 sales invoices; Summer Sports Division, 17,000 sales invoices. d. Warehouse expense-allocated 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.
Learning Objective 3 Sales Cost of goods sold Gross profit Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Winter Sports Division 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 QOQ QOOQ QO000Q Advertising expense Transportation rate per bill of lading Number of bills of lading Transportation expense Accounts receivable collection rate Number of sales invoices $ Accounts receivable collection expense Warehouse rate per sq. ft. Number of square feet Warehouse expense $ Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20Y9 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. Summer Sports Division 0000 00000 0000000000 Winter Sports Division Summer Sports Division Total
Transcribed Image Text:Learning Objective 3 Sales Cost of goods sold Gross profit Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Winter Sports Division 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 QOQ QOOQ QO000Q Advertising expense Transportation rate per bill of lading Number of bills of lading Transportation expense Accounts receivable collection rate Number of sales invoices $ Accounts receivable collection expense Warehouse rate per sq. ft. Number of square feet Warehouse expense $ Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20Y9 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. Summer Sports Division 0000 00000 0000000000 Winter Sports Division Summer Sports Division Total
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Segment Reporting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS