Profit Center Responsibility Reporting XSport Sporting Goods Co. 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 $26,775,000 Sales—Summer Sports Division 29,580,000 Cost of Goods Sold—Winter Sports Division 16,065,000 Cost of Goods Sold—Summer Sports Division 17,085,000 Sales Expense—Winter Sports Division 4,590,000 Sales Expense—Summer Sports Division 4,080,000 Administrative Expense—Winter Sports Division 2,677,500 Administrative Expense—Summer Sports Division 2,626,500 Advertising Expense 927,000 Transportation Expense 408,800 Accounts Receivable Collection Expense 224,000 Warehouse Expense 2,550,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising expense—incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $435,000; Summer Sports Division, $492,000. Transportation expense—charged back to divisions at a charge rate of $14 per bill of lading: Winter Sports Division, 13,900 bills of lading; Summer Sports Division, 15,300 bills of lading. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $8 per invoice: Winter Sports Division, 12,900 sales invoices; Summer Sports Division, 15,100 sales invoices. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 150,000 square feet; Summer Sports Division, 190,000 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. XSport Sporting Goods Co.Divisional Income StatementsFor the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Sales $fill in the blank d9e09e0cffe1051_1 $fill in the blank d9e09e0cffe1051_2 Cost of goods sold fill in the blank d9e09e0cffe1051_3 fill in the blank d9e09e0cffe1051_4 Gross profit $fill in the blank d9e09e0cffe1051_5 $fill in the blank d9e09e0cffe1051_6 Divisional selling and administrative expenses: blank blank Divisional selling expenses $fill in the blank d9e09e0cffe1051_7 $fill in the blank d9e09e0cffe1051_8 Divisional administrative expenses fill in the blank d9e09e0cffe1051_9 fill in the blank d9e09e0cffe1051_10 Total divisional selling and administrative expenses $fill in the blank d9e09e0cffe1051_11 $fill in the blank d9e09e0cffe1051_12 Income from operations before service department charges $fill in the blank d9e09e0cffe1051_13 $fill in the blank d9e09e0cffe1051_14 Service department charges: Advertising expense $fill in the blank d9e09e0cffe1051_15 $fill in the blank d9e09e0cffe1051_16 Transportation expense fill in the blank d9e09e0cffe1051_17 fill in the blank d9e09e0cffe1051_18 Accounts receivable collection expense fill in the blank d9e09e0cffe1051_19 fill in the blank d9e09e0cffe1051_20 Warehouse expense fill in the blank d9e09e0cffe1051_21 fill in the blank d9e09e0cffe1051_22 Total service department charges $fill in the blank d9e09e0cffe1051_23 $fill in the blank d9e09e0cffe1051_24 Income from operations $fill in the blank d9e09e0cffe1051_25 $fill in the blank d9e09e0cffe1051_26 Question Content Area Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. XSport Sporting Goods Co.Service Department ChargesFor the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Total Advertising expense $fill in the blank 43811af7000b076_1 $fill in the blank 43811af7000b076_2 $fill in the blank 43811af7000b076_3 Transportation rate per bill of lading $fill in the blank 43811af7000b076_4 $fill in the blank 43811af7000b076_5 Number of bills of lading fill in the blank 43811af7000b076_6 fill in the blank 43811af7000b076_7 Transportation expense $fill in the blank 43811af7000b076_8 $fill in the blank 43811af7000b076_9 $fill in the blank 43811af7000b076_10 Accounts receivable collection rate $fill in the blank 43811af7000b076_11 $fill in the blank 43811af7000b076_12 Number of sales invoices fill in the blank 43811af7000b076_13 fill in the blank 43811af7000b076_14 Accounts receivable collection expense $fill in the blank 43811af7000b076_15 $fill in the blank 43811af7000b076_16 $fill in the blank 43811af7000b076_17 Warehouse rate per sq. ft. $fill in the blank 43811af7000b076_18 $fill in the blank 43811af7000b076_19 Number of square feet fill in the blank 43811af7000b076_20 fill in the blank 43811af7000b076_21 Warehouse expense $fill in the blank 43811af7000b076_22 $fill in the blank 43811af7000b076_23 $fill in the blank 43811af7000b076_24

Profit Center Responsibility Reporting XSport Sporting Goods Co. 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 $26,775,000 Sales—Summer Sports Division 29,580,000 Cost of Goods Sold—Winter Sports Division 16,065,000 Cost of Goods Sold—Summer Sports Division 17,085,000 Sales Expense—Winter Sports Division 4,590,000 Sales Expense—Summer Sports Division 4,080,000 Administrative Expense—Winter Sports Division 2,677,500 Administrative Expense—Summer Sports Division 2,626,500 Advertising Expense 927,000 Transportation Expense 408,800 Accounts Receivable Collection Expense 224,000 Warehouse Expense 2,550,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising expense—incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $435,000; Summer Sports Division, $492,000. Transportation expense—charged back to divisions at a charge rate of $14 per bill of lading: Winter Sports Division, 13,900 bills of lading; Summer Sports Division, 15,300 bills of lading. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $8 per invoice: Winter Sports Division, 12,900 sales invoices; Summer Sports Division, 15,100 sales invoices. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 150,000 square feet; Summer Sports Division, 190,000 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. XSport Sporting Goods Co.Divisional Income StatementsFor the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Sales $fill in the blank d9e09e0cffe1051_1 $fill in the blank d9e09e0cffe1051_2 Cost of goods sold fill in the blank d9e09e0cffe1051_3 fill in the blank d9e09e0cffe1051_4 Gross profit $fill in the blank d9e09e0cffe1051_5 $fill in the blank d9e09e0cffe1051_6 Divisional selling and administrative expenses: blank blank Divisional selling expenses $fill in the blank d9e09e0cffe1051_7 $fill in the blank d9e09e0cffe1051_8 Divisional administrative expenses fill in the blank d9e09e0cffe1051_9 fill in the blank d9e09e0cffe1051_10 Total divisional selling and administrative expenses $fill in the blank d9e09e0cffe1051_11 $fill in the blank d9e09e0cffe1051_12 Income from operations before service department charges $fill in the blank d9e09e0cffe1051_13 $fill in the blank d9e09e0cffe1051_14 Service department charges: Advertising expense $fill in the blank d9e09e0cffe1051_15 $fill in the blank d9e09e0cffe1051_16 Transportation expense fill in the blank d9e09e0cffe1051_17 fill in the blank d9e09e0cffe1051_18 Accounts receivable collection expense fill in the blank d9e09e0cffe1051_19 fill in the blank d9e09e0cffe1051_20 Warehouse expense fill in the blank d9e09e0cffe1051_21 fill in the blank d9e09e0cffe1051_22 Total service department charges $fill in the blank d9e09e0cffe1051_23 $fill in the blank d9e09e0cffe1051_24 Income from operations $fill in the blank d9e09e0cffe1051_25 $fill in the blank d9e09e0cffe1051_26 Question Content Area Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. XSport Sporting Goods Co.Service Department ChargesFor the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Total Advertising expense $fill in the blank 43811af7000b076_1 $fill in the blank 43811af7000b076_2 $fill in the blank 43811af7000b076_3 Transportation rate per bill of lading $fill in the blank 43811af7000b076_4 $fill in the blank 43811af7000b076_5 Number of bills of lading fill in the blank 43811af7000b076_6 fill in the blank 43811af7000b076_7 Transportation expense $fill in the blank 43811af7000b076_8 $fill in the blank 43811af7000b076_9 $fill in the blank 43811af7000b076_10 Accounts receivable collection rate $fill in the blank 43811af7000b076_11 $fill in the blank 43811af7000b076_12 Number of sales invoices fill in the blank 43811af7000b076_13 fill in the blank 43811af7000b076_14 Accounts receivable collection expense $fill in the blank 43811af7000b076_15 $fill in the blank 43811af7000b076_16 $fill in the blank 43811af7000b076_17 Warehouse rate per sq. ft. $fill in the blank 43811af7000b076_18 $fill in the blank 43811af7000b076_19 Number of square feet fill in the blank 43811af7000b076_20 fill in the blank 43811af7000b076_21 Warehouse expense $fill in the blank 43811af7000b076_22 $fill in the blank 43811af7000b076_23 $fill in the blank 43811af7000b076_24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

XSport Sporting Goods Co.Divisional Income StatementsFor the Year Ended December 31, 20Y9

	Winter Sports Division	Summer Sports Division
Sales	$fill in the blank d9e09e0cffe1051_1	$fill in the blank d9e09e0cffe1051_2
Cost of goods sold	fill in the blank d9e09e0cffe1051_3	fill in the blank d9e09e0cffe1051_4
Gross profit	$fill in the blank d9e09e0cffe1051_5	$fill in the blank d9e09e0cffe1051_6
Divisional selling and administrative expenses:	blank	blank
Divisional selling expenses	$fill in the blank d9e09e0cffe1051_7	$fill in the blank d9e09e0cffe1051_8
Divisional administrative expenses	fill in the blank d9e09e0cffe1051_9	fill in the blank d9e09e0cffe1051_10
Total divisional selling and administrative expenses	$fill in the blank d9e09e0cffe1051_11	$fill in the blank d9e09e0cffe1051_12
Income from operations before service department charges	$fill in the blank d9e09e0cffe1051_13	$fill in the blank d9e09e0cffe1051_14
Service department charges:
Advertising expense	$fill in the blank d9e09e0cffe1051_15	$fill in the blank d9e09e0cffe1051_16
Transportation expense	fill in the blank d9e09e0cffe1051_17	fill in the blank d9e09e0cffe1051_18
Accounts receivable collection expense	fill in the blank d9e09e0cffe1051_19	fill in the blank d9e09e0cffe1051_20
Warehouse expense	fill in the blank d9e09e0cffe1051_21	fill in the blank d9e09e0cffe1051_22
Total service department charges	$fill in the blank d9e09e0cffe1051_23	$fill in the blank d9e09e0cffe1051_24
Income from operations	$fill in the blank d9e09e0cffe1051_25	$fill in the blank d9e09e0cffe1051_26

Question Content Area

Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.

XSport Sporting Goods Co.Service Department ChargesFor the Year Ended December 31, 20Y9

	Winter Sports Division	Summer Sports Division	Total
Advertising expense	$fill in the blank 43811af7000b076_1	$fill in the blank 43811af7000b076_2	$fill in the blank 43811af7000b076_3
Transportation rate per bill of lading	$fill in the blank 43811af7000b076_4	$fill in the blank 43811af7000b076_5
Number of bills of lading	fill in the blank 43811af7000b076_6	fill in the blank 43811af7000b076_7
Transportation expense	$fill in the blank 43811af7000b076_8	$fill in the blank 43811af7000b076_9	$fill in the blank 43811af7000b076_10
Accounts receivable collection rate	$fill in the blank 43811af7000b076_11	$fill in the blank 43811af7000b076_12
Number of sales invoices	fill in the blank 43811af7000b076_13	fill in the blank 43811af7000b076_14
Accounts receivable collection expense	$fill in the blank 43811af7000b076_15	$fill in the blank 43811af7000b076_16	$fill in the blank 43811af7000b076_17
Warehouse rate per sq. ft.	$fill in the blank 43811af7000b076_18	$fill in the blank 43811af7000b076_19
Number of square feet	fill in the blank 43811af7000b076_20	fill in the blank 43811af7000b076_21
Warehouse expense	$fill in the blank 43811af7000b076_22	$fill in the blank 43811af7000b076_23	$fill in the blank 43811af7000b076_24

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Sales—Winter Sports Division	$26,775,000
Sales—Summer Sports Division	29,580,000
Cost of Goods Sold—Winter Sports Division	16,065,000
Cost of Goods Sold—Summer Sports Division	17,085,000
Sales Expense—Winter Sports Division	4,590,000
Sales Expense—Summer Sports Division	4,080,000
Administrative Expense—Winter Sports Division	2,677,500
Administrative Expense—Summer Sports Division	2,626,500
Advertising Expense	927,000
Transportation Expense	408,800
Accounts Receivable Collection Expense	224,000
Warehouse Expense	2,550,000