Profit Center Responsibility ReportingGlades 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$31,920,000Sales—Summer Sports Division35,264,000Cost of Goods Sold—Winter Sports Division19,152,000Cost of Goods Sold—Summer Sports Division20,368,000Sales Expense—Winter Sports Division5,472,000Sales Expense—Summer Sports Division4,864,000Administrative Expense—Winter Sports Division3,192,000Administrative Expense—Summer Sports Division3,131,200Advertising Expense1,025,000Transportation Expense400,400Accounts Receivable Collection Expense245,700Warehouse Expense3,040,000The 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, $481,000; Summer Sports Division, $544,000.Transportation expense—charged back to divisions at a charge rate of $14 per bill of lading: Winter Sports Division, 13,600 bills of lading; Summer Sports Division, 15,000 bills of lading.Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $9 per invoice: Winter Sports Division, 12,600 sales invoices; Summer Sports Division, 14,700 sales invoices.Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 170,000 square feet; Summer Sports Division, 210,000 square feet.Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations.Glades Sporting Goods Co.Divisional Income StatementsFor the Year Ended December 31, 20Y8 Winter Sports DivisionSummer Sports DivisionSales$fill in the blank c55f9007502a024_1$fill in the blank c55f9007502a024_2Cost of goods soldfill in the blank c55f9007502a024_3fill in the blank c55f9007502a024_4Gross profit$fill in the blank c55f9007502a024_5$fill in the blank c55f9007502a024_6Divisional selling and administrative expenses: Divisional selling expenses$fill in the blank c55f9007502a024_7$fill in the blank c55f9007502a024_8Divisional administrative expensesfill in the blank c55f9007502a024_9fill in the blank c55f9007502a024_10Total divisional selling and administrative expenses$fill in the blank c55f9007502a024_11$fill in the blank c55f9007502a024_12Income from operations before service department charges$fill in the blank c55f9007502a024_13$fill in the blank c55f9007502a024_14Service department charges: Advertising expense$fill in the blank c55f9007502a024_15$fill in the blank c55f9007502a024_16Transportation expensefill in the blank c55f9007502a024_17fill in the blank c55f9007502a024_18Accounts receivable collection expensefill in the blank c55f9007502a024_19fill in the blank c55f9007502a024_20Warehouse expensefill in the blank c55f9007502a024_21fill in the blank c55f9007502a024_22Total service department charges$fill in the blank c55f9007502a024_23$fill in the blank c55f9007502a024_24Income from operations$fill in the blank c55f9007502a024_25$fill in the blank c55f9007502a024_26Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.Glades Sporting Goods Co.Service Department ChargesFor the Year Ended December 31, 20Y8 Winter Sports DivisionSummer Sports DivisionTotalAdvertising expense$fill in the blank d6a1d9f42ff8ff0_1$fill in the blank d6a1d9f42ff8ff0_2$fill in the blank d6a1d9f42ff8ff0_3Transportation rate per bill of lading$fill in the blank d6a1d9f42ff8ff0_4$fill in the blank d6a1d9f42ff8ff0_5 Number of bills of ladingfill in the blank d6a1d9f42ff8ff0_6fill in the blank d6a1d9f42ff8ff0_7 Transportation expense$fill in the blank d6a1d9f42ff8ff0_8$fill in the blank d6a1d9f42ff8ff0_9$fill in the blank d6a1d9f42ff8ff0_10Accounts receivable collection rate$fill in the blank d6a1d9f42ff8ff0_11$fill in the blank d6a1d9f42ff8ff0_12 Number of sales invoicesfill in the blank d6a1d9f42ff8ff0_13fill in the blank d6a1d9f42ff8ff0_14 Accounts receivable collection expense$fill in the blank d6a1d9f42ff8ff0_15$fill in the blank d6a1d9f42ff8ff0_16$fill in the blank d6a1d9f42ff8ff0_17Warehouse rate per sq. ft.$fill in the blank d6a1d9f42ff8ff0_18$fill in the blank d6a1d9f42ff8ff0_19 Number of square feetfill in the blank d6a1d9f42ff8ff0_20fill in the blank d6a1d9f42ff8ff0_21 Warehouse expense$fill in the blank d6a1d9f42ff8ff0_22$fill in the blank d6a1d9f42ff8ff0_23$fill in the blank d6a1d9f42ff8ff0_24

Question

Profit Center Responsibility ReportingGlades 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$31,920,000Sales—Summer Sports Division35,264,000Cost of Goods Sold—Winter Sports Division19,152,000Cost of Goods Sold—Summer Sports Division20,368,000Sales Expense—Winter Sports Division5,472,000Sales Expense—Summer Sports Division4,864,000Administrative Expense—Winter Sports Division3,192,000Administrative Expense—Summer Sports Division3,131,200Advertising Expense1,025,000Transportation Expense400,400Accounts Receivable Collection Expense245,700Warehouse Expense3,040,000The 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, $481,000; Summer Sports Division, $544,000.Transportation expense—charged back to divisions at a charge rate of $14 per bill of lading: Winter Sports Division, 13,600 bills of lading; Summer Sports Division, 15,000 bills of lading.Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $9 per invoice: Winter Sports Division, 12,600 sales invoices; Summer Sports Division, 14,700 sales invoices.Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 170,000 square feet; Summer Sports Division, 210,000 square feet.Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations.Glades Sporting Goods Co.Divisional Income StatementsFor the Year Ended December 31, 20Y8 Winter Sports DivisionSummer Sports DivisionSales$fill in the blank c55f9007502a024_1$fill in the blank c55f9007502a024_2Cost of goods soldfill in the blank c55f9007502a024_3fill in the blank c55f9007502a024_4Gross profit$fill in the blank c55f9007502a024_5$fill in the blank c55f9007502a024_6Divisional selling and administrative expenses:  Divisional selling expenses$fill in the blank c55f9007502a024_7$fill in the blank c55f9007502a024_8Divisional administrative expensesfill in the blank c55f9007502a024_9fill in the blank c55f9007502a024_10Total divisional selling and administrative expenses$fill in the blank c55f9007502a024_11$fill in the blank c55f9007502a024_12Income from operations before service department charges$fill in the blank c55f9007502a024_13$fill in the blank c55f9007502a024_14Service department charges:  Advertising expense$fill in the blank c55f9007502a024_15$fill in the blank c55f9007502a024_16Transportation expensefill in the blank c55f9007502a024_17fill in the blank c55f9007502a024_18Accounts receivable collection expensefill in the blank c55f9007502a024_19fill in the blank c55f9007502a024_20Warehouse expensefill in the blank c55f9007502a024_21fill in the blank c55f9007502a024_22Total service department charges$fill in the blank c55f9007502a024_23$fill in the blank c55f9007502a024_24Income from operations$fill in the blank c55f9007502a024_25$fill in the blank c55f9007502a024_26Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.Glades Sporting Goods Co.Service Department ChargesFor the Year Ended December 31, 20Y8 Winter Sports DivisionSummer Sports DivisionTotalAdvertising expense$fill in the blank d6a1d9f42ff8ff0_1$fill in the blank d6a1d9f42ff8ff0_2$fill in the blank d6a1d9f42ff8ff0_3Transportation rate per bill of lading$fill in the blank d6a1d9f42ff8ff0_4$fill in the blank d6a1d9f42ff8ff0_5 Number of bills of ladingfill in the blank d6a1d9f42ff8ff0_6fill in the blank d6a1d9f42ff8ff0_7 Transportation expense$fill in the blank d6a1d9f42ff8ff0_8$fill in the blank d6a1d9f42ff8ff0_9$fill in the blank d6a1d9f42ff8ff0_10Accounts receivable collection rate$fill in the blank d6a1d9f42ff8ff0_11$fill in the blank d6a1d9f42ff8ff0_12 Number of sales invoicesfill in the blank d6a1d9f42ff8ff0_13fill in the blank d6a1d9f42ff8ff0_14 Accounts receivable collection expense$fill in the blank d6a1d9f42ff8ff0_15$fill in the blank d6a1d9f42ff8ff0_16$fill in the blank d6a1d9f42ff8ff0_17Warehouse rate per sq. ft.$fill in the blank d6a1d9f42ff8ff0_18$fill in the blank d6a1d9f42ff8ff0_19 Number of square feetfill in the blank d6a1d9f42ff8ff0_20fill in the blank d6a1d9f42ff8ff0_21 Warehouse expense$fill in the blank d6a1d9f42ff8ff0_22$fill in the blank d6a1d9f42ff8ff0_23$fill in the blank d6a1d9f42ff8ff0_24

Accepted Answer

Income statement is defined as the statement which used fir reporting the financial performance of…

Sales—Winter Sports Division	$31,920,000
Sales—Summer Sports Division	35,264,000
Cost of Goods Sold—Winter Sports Division	19,152,000
Cost of Goods Sold—Summer Sports Division	20,368,000
Sales Expense—Winter Sports Division	5,472,000
Sales Expense—Summer Sports Division	4,864,000
Administrative Expense—Winter Sports Division	3,192,000
Administrative Expense—Summer Sports Division	3,131,200
Advertising Expense	1,025,000
Transportation Expense	400,400
Accounts Receivable Collection Expense	245,700
Warehouse Expense	3,040,000

Glades Sporting Goods Co.
Divisional Income Statements
For the Year Ended December 31, 20Y8
	Winter Sports Division	Summer Sports Division
Sales	$fill in the blank c55f9007502a024_1	$fill in the blank c55f9007502a024_2
Cost of goods sold	fill in the blank c55f9007502a024_3	fill in the blank c55f9007502a024_4
Gross profit	$fill in the blank c55f9007502a024_5	$fill in the blank c55f9007502a024_6
Divisional selling and administrative expenses:
Divisional selling expenses	$fill in the blank c55f9007502a024_7	$fill in the blank c55f9007502a024_8
Divisional administrative expenses	fill in the blank c55f9007502a024_9	fill in the blank c55f9007502a024_10
Total divisional selling and administrative expenses	$fill in the blank c55f9007502a024_11	$fill in the blank c55f9007502a024_12
Income from operations before service department charges	$fill in the blank c55f9007502a024_13	$fill in the blank c55f9007502a024_14
Service department charges:
Advertising expense	$fill in the blank c55f9007502a024_15	$fill in the blank c55f9007502a024_16
Transportation expense	fill in the blank c55f9007502a024_17	fill in the blank c55f9007502a024_18
Accounts receivable collection expense	fill in the blank c55f9007502a024_19	fill in the blank c55f9007502a024_20
Warehouse expense	fill in the blank c55f9007502a024_21	fill in the blank c55f9007502a024_22
Total service department charges	$fill in the blank c55f9007502a024_23	$fill in the blank c55f9007502a024_24
Income from operations	$fill in the blank c55f9007502a024_25	$fill in the blank c55f9007502a024_26

Glades Sporting Goods Co.
Service Department Charges
For the Year Ended December 31, 20Y8
	Winter Sports Division	Summer Sports Division	Total
Advertising expense	$fill in the blank d6a1d9f42ff8ff0_1	$fill in the blank d6a1d9f42ff8ff0_2	$fill in the blank d6a1d9f42ff8ff0_3
Transportation rate per bill of lading	$fill in the blank d6a1d9f42ff8ff0_4	$fill in the blank d6a1d9f42ff8ff0_5
Number of bills of lading	fill in the blank d6a1d9f42ff8ff0_6	fill in the blank d6a1d9f42ff8ff0_7
Transportation expense	$fill in the blank d6a1d9f42ff8ff0_8	$fill in the blank d6a1d9f42ff8ff0_9	$fill in the blank d6a1d9f42ff8ff0_10
Accounts receivable collection rate	$fill in the blank d6a1d9f42ff8ff0_11	$fill in the blank d6a1d9f42ff8ff0_12
Number of sales invoices	fill in the blank d6a1d9f42ff8ff0_13	fill in the blank d6a1d9f42ff8ff0_14
Accounts receivable collection expense	$fill in the blank d6a1d9f42ff8ff0_15	$fill in the blank d6a1d9f42ff8ff0_16	$fill in the blank d6a1d9f42ff8ff0_17
Warehouse rate per sq. ft.	$fill in the blank d6a1d9f42ff8ff0_18	$fill in the blank d6a1d9f42ff8ff0_19
Number of square feet	fill in the blank d6a1d9f42ff8ff0_20	fill in the blank d6a1d9f42ff8ff0_21
Warehouse expense	$fill in the blank d6a1d9f42ff8ff0_22	$fill in the blank d6a1d9f42ff8ff0_23	$fill in the blank d6a1d9f42ff8ff0_24