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 $10,525,000 Sales—Summer Sports Division 13,610,000 Cost of Goods Sold—Winter Sports Division 6,280,000 Cost of Goods Sold—Summer Sports Division 7,868,000 Sales expense—Winter Sports Division 1,650,000 Sales expense—Summer Sports Division 1,894,000 Administrative Expense—Winter Sports Division 1,002,000 Administrative Expense—Summer Sports Division 1,204,400 Advertising Expense 479,000 Transportation Expense 144,500 Accounts Receivable Collection Expense 120,400 Warehouse Expense 1,164,000 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 bills of lading; Summer Sports Division, 15,500 bills of lading. C. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $5 per invoice: Winter Sports Division, 9,650 sales invoices; Summer Sports Division, 14,430 sales invoices. D. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 91,000 square feet; Summer Sports Division, 103,000 square feet. Required: 1. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (Complete the Supporting Calculations tab first.) A colon (:) will fill in where needed. 2. Provide supporting calculations for service department charges

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 $10,525,000 Sales—Summer Sports Division 13,610,000 Cost of Goods Sold—Winter Sports Division 6,280,000 Cost of Goods Sold—Summer Sports Division 7,868,000 Sales expense—Winter Sports Division 1,650,000 Sales expense—Summer Sports Division 1,894,000 Administrative Expense—Winter Sports Division 1,002,000 Administrative Expense—Summer Sports Division 1,204,400 Advertising Expense 479,000 Transportation Expense 144,500 Accounts Receivable Collection Expense 120,400 Warehouse Expense 1,164,000 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 bills of lading; Summer Sports Division, 15,500 bills of lading. C. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $5 per invoice: Winter Sports Division, 9,650 sales invoices; Summer Sports Division, 14,430 sales invoices. D. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 91,000 square feet; Summer Sports Division, 103,000 square feet. Required: 1. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (Complete the Supporting Calculations tab first.) A colon (:) will fill in where needed. 2. Provide supporting calculations for service department charges

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Sales—Winter Sports Division	$10,525,000
Sales—Summer Sports Division	13,610,000
Cost of Goods Sold—Winter Sports Division	6,280,000
Cost of Goods Sold—Summer Sports Division	7,868,000
Sales expense—Winter Sports Division	1,650,000
Sales expense—Summer Sports Division	1,894,000
Administrative Expense—Winter Sports Division	1,002,000
Administrative Expense—Summer Sports Division	1,204,400
Advertising Expense	479,000
Transportation Expense	144,500
Accounts Receivable Collection Expense	120,400
Warehouse Expense	1,164,000

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 bills of lading; Summer Sports Division, 15,500 bills of lading.
C.	Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $5 per invoice: Winter Sports Division, 9,650 sales invoices; Summer Sports Division, 14,430 sales invoices.
D.	Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 91,000 square feet; Summer Sports Division, 103,000 square feet.

	Required:
1.	Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (Complete the Supporting Calculations tab first.) A colon (:) will fill in where needed.
2.	Provide supporting calculations for service department charges.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.