Glades 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales-Winter Sports Division $10,510,000 Sales-Summer Sports Division 13,615,000

Glades 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales-Winter Sports Division $10,510,000 Sales-Summer Sports Division 13,615,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 6P: Arctic Software Inc. has two product lines. The income statement for the year ended December 31...

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Profit center responsibility reporting On-Demand Sports Co. operates two divisions—the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of November 30. 20Y1, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded The bases to be used in allocating expenses, together with other essential information, are as follows a.Advertising expense—incurred al headquarters, charged back to divisions on the basis of usage: Action Sports Division. $1,200,000; Team Sports Division, $1,800,000. b. Transportation expense—charged hack lo divisions at a charge rale of $18.50 per bill of lading: Action Sports Division, 14.000 bills of lading; Team Sports Division. 21.400 bills of lading. C. Accounts receivable collection expense—incurred al headquarters, charged back to divisions at a charge rate of $9-00 per invoice: Action Sports Division. 32.000 sales invoices; Team Sports Division, 12.500 sales invoices. d. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Action Sports Division. 120.000 square feet; Team Sports Division. 80.000 square feet. Prepare divisional income statements with two column headings: Action Sports Division and Team Sports Division. Provide supporting schedules for determining service department charges.
Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?
Arctic Software Inc. has two product lines. The income statement for the year ended December 31 shows the following: The products, Num 1 and Num 2, are sold in two territories, North and South, as follows: The common fixed expenses are traceable to each territory as follows: The direct expenses of Num 1, 160,000, and of Num 2, 140,000, are not identifiable with either of the two territories. Required: 1. Prepare income statements for the year, segmented by territory and including a column for the entire company. 2. Why are direct expenses of one type of segment report not direct expenses of another type of segment report?
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 $8,900,000 Sales—Summer Sports Division 16,400,000 Cost of Goods Sold—Winter Sports Division 5,000,000 Cost of Goods Sold—Summer Sports Division 9,000,000 Sales Expense—Winter Sports Division 650,000 Sales Expense—Summer Sports Division 1,200,000 Administrative Expense—Winter Sports Division 800,000 Administrative Expense—Summer Sports Division 1,450,000 Advertising Expense 1,090,000 Transportation Expense 192,000 Accounts Receivable Collection Expense 68,000 Warehouse Expense 1,800,000 The bases to be used in allocating expenses, together with other information, are as follows: Advertising expense—incurred at…
Glades 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $12,600,000 Sales—Summer Sports Division 16,300,000 Cost of Goods Sold—Winter Sports Division 7,560,000 Cost of Goods Sold—Summer Sports Division 9,454,000 Sales Expense—Winter Sports Division 2,016,000 Sales Expense—Summer Sports Division 2,282,000 Administrative Expense—Winter Sports Division 1,260,000 Administrative Expense—Summer Sports Division 1,450,700 Advertising Expense 578,000 Transportation Expense 265,660 Accounts Receivable Collection Expense 174,000 Warehouse Expense 1,540,000 The bases to be used in allocating expenses, together with other essential information, are as follows: A.…
lades 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $12,600,000 Sales—Summer Sports Division 16,300,000 Cost of Goods Sold—Winter Sports Division 7,560,000 Cost of Goods Sold—Summer Sports Division 9,454,000 Sales Expense—Winter Sports Division 2,016,000 Sales Expense—Summer Sports Division 2,282,000 Administrative Expense—Winter Sports Division 1,260,000 Administrative Expense—Summer Sports Division 1,450,700 Advertising Expense 578,000 Transportation Expense 265,660 Accounts Receivable Collection Expense 174,000 Warehouse Expense 1,540,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising…
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 $34,020,000 Sales—Summer Sports Division 37,584,000 Cost of Goods Sold—Winter Sports Division 20,412,000 Cost of Goods Sold—Summer Sports Division 21,708,000 Sales Expense—Winter Sports Division 5,832,000 Sales Expense—Summer Sports Division 5,184,000 Administrative Expense—Winter Sports Division 3,402,000 Administrative Expense—Summer Sports Division 3,337,200 Advertising Expense 997,000 Transportation Expense 438,200 Accounts Receivable Collection Expense 211,400 Warehouse Expense 3,240,000 The bases to be used in allocating expenses, together with other information, are as follows: Advertising expense—incurred…
Glades 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $25,200,000 Sales—Summer Sports Division 27,840,000 Cost of Goods Sold—Winter Sports Division 15,120,000 Cost of Goods Sold—Summer Sports Division 16,080,000 Sales Expense—Winter Sports Division 4,320,000 Sales Expense—Summer Sports Division 3,840,000 Administrative Expense—Winter Sports Division 2,520,000 Administrative Expense—Summer Sports Division 2,472,000 Advertising Expense 958,000 Transportation Expense 419,900 Accounts Receivable Collection Expense 279,000 Warehouse Expense 2,400,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising…
Glades 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $25,200,000 Sales—Summer Sports Division 27,840,000 Cost of Goods Sold—Winter Sports Division 15,120,000 Cost of Goods Sold—Summer Sports Division 16,080,000 Sales Expense—Winter Sports Division 4,320,000 Sales Expense—Summer Sports Division 3,840,000 Administrative Expense—Winter Sports Division 2,520,000 Administrative Expense—Summer Sports Division 2,472,000 Advertising Expense 958,000 Transportation Expense 419,900 Accounts Receivable Collection Expense 279,000 Warehouse Expense 2,400,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising…
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 $9,200,000 Sales—Summer Sports Division 16,500,000 Cost of Goods Sold—Winter Sports Division 4,400,000 Cost of Goods Sold—Summer Sports Division 9,000,000 Sales Expense—Winter Sports Division 740,000 Sales Expense—Summer Sports Division 1,300,000 Administrative Expense—Winter Sports Division 740,000 Administrative Expense—Summer Sports Division 1,760,000 Advertising Expense 1,115,000 Transportation Expense 285,000 Accounts Receivable Collection Expense 70,000 Warehouse Expense 987,000 The bases to be used in allocating expenses, together with other information, are as follows: Advertising expense—incurred at…
Glades 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $33,075,000 Sales—Summer Sports Division 36,540,000 Cost of Goods Sold—Winter Sports Division 19,845,000 Cost of Goods Sold—Summer Sports Division 21,105,000 Sales Expense—Winter Sports Division 5,670,000 Sales Expense—Summer Sports Division 5,040,000 Administrative Expense—Winter Sports Division 3,307,500 Administrative Expense—Summer Sports Division 3,244,500 Advertising Expense 1,025,000 Transportation Expense 411,600 Accounts Receivable Collection Expense 197,400 Warehouse Expense 3,150,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising…
Glades 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, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $33,600,000 Sales—Summer Sports Division 37,120,000 Cost of Goods Sold—Winter Sports Division 20,160,000 Cost of Goods Sold—Summer Sports Division 21,440,000 Sales Expense—Winter Sports Division 5,760,000 Sales Expense—Summer Sports Division 5,120,000 Administrative Expense—Winter Sports Division 3,360,000 Administrative Expense—Summer Sports Division 3,296,000 Advertising Expense 1,037,000 Transportation Expense 503,200 Accounts Receivable Collection Expense 198,800 Warehouse Expense 3,200,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising…