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 $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 headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $375,000; Summer Sports Division, $715,000. Transportation expense—allocated to divisions at a rate of $4.00 per bill of lading: Winter Sports Division, 17,500 bills of lading; Summer Sports Division, 30,500 bills of lading. Accounts receivable collection expense—incurred at headquarters, allocated to divisions at a rate of $1.00 per invoice: Winter Sports Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices. Warehouse expense—allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 60,000 square feet; Summer Sports Division, 90,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Sales $fill in the blank 2a63bcfa407807a_1 $fill in the blank 2a63bcfa407807a_2 Cost of goods sold fill in the blank 2a63bcfa407807a_3 fill in the blank 2a63bcfa407807a_4 Gross profit $fill in the blank 2a63bcfa407807a_5 $fill in the blank 2a63bcfa407807a_6 Divisional selling and administrative expenses: Divisional selling expenses $fill in the blank 2a63bcfa407807a_7 $fill in the blank 2a63bcfa407807a_8 Divisional administrative expenses fill in the blank 2a63bcfa407807a_9 fill in the blank 2a63bcfa407807a_10 Total divisional selling and administrative expenses $fill in the blank 2a63bcfa407807a_11 $fill in the blank 2a63bcfa407807a_12 Operating income before support department allocations $fill in the blank 2a63bcfa407807a_13 $fill in the blank 2a63bcfa407807a_14 Support department allocations: Advertising expense $fill in the blank 2a63bcfa407807a_15 $fill in the blank 2a63bcfa407807a_16 Transportation expense fill in the blank 2a63bcfa407807a_17 fill in the blank 2a63bcfa407807a_18 Accounts receivable collection expense fill in the blank 2a63bcfa407807a_19 fill in the blank 2a63bcfa407807a_20 Warehouse expense fill in the blank 2a63bcfa407807a_21 fill in the blank 2a63bcfa407807a_22 Total support department allocations $fill in the blank 2a63bcfa407807a_23 $fill in the blank 2a63bcfa407807a_24 Operating income $fill in the blank 2a63bcfa407807a_25 $fill in the blank 2a63bcfa407807a_26 Provide supporting calculations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Total Advertising expense $fill in the blank 066fdbfecfd107b_1 $fill in the blank 066fdbfecfd107b_2 $fill in the blank 066fdbfecfd107b_3 Transportation rate per bill of lading $fill in the blank 066fdbfecfd107b_4 $fill in the blank 066fdbfecfd107b_5 Number of bills of lading fill in the blank 066fdbfecfd107b_6 fill in the blank 066fdbfecfd107b_7 Transportation expense $fill in the blank 066fdbfecfd107b_8 $fill in the blank 066fdbfecfd107b_9 $fill in the blank 066fdbfecfd107b_10 Accounts receivable collection rate $fill in the blank 066fdbfecfd107b_11 $fill in the blank 066fdbfecfd107b_12 Number of sales invoices fill in the blank 066fdbfecfd107b_13 fill in the blank 066fdbfecfd107b_14 Accounts receivable collection expense $fill in the blank 066fdbfecfd107b_15 $fill in the blank 066fdbfecfd107b_16 $fill in the blank 066fdbfecfd107b_17 Warehouse rate per sq. ft. $fill in the blank 066fdbfecfd107b_18 $fill in the blank 066fdbfecfd107b_19 Number of square feet fill in the blank 066fdbfecfd107b_20 fill in the blank 066fdbfecfd107b_21 Warehouse expense $fill in the blank 066fdbfecfd107b_22 $fill in the blank 066fdbfecfd107b_23 $fill in the blank 066fdbfecfd107b_24

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 $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 headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $375,000; Summer Sports Division, $715,000. Transportation expense—allocated to divisions at a rate of $4.00 per bill of lading: Winter Sports Division, 17,500 bills of lading; Summer Sports Division, 30,500 bills of lading. Accounts receivable collection expense—incurred at headquarters, allocated to divisions at a rate of $1.00 per invoice: Winter Sports Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices. Warehouse expense—allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 60,000 square feet; Summer Sports Division, 90,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Sales $fill in the blank 2a63bcfa407807a_1 $fill in the blank 2a63bcfa407807a_2 Cost of goods sold fill in the blank 2a63bcfa407807a_3 fill in the blank 2a63bcfa407807a_4 Gross profit $fill in the blank 2a63bcfa407807a_5 $fill in the blank 2a63bcfa407807a_6 Divisional selling and administrative expenses: Divisional selling expenses $fill in the blank 2a63bcfa407807a_7 $fill in the blank 2a63bcfa407807a_8 Divisional administrative expenses fill in the blank 2a63bcfa407807a_9 fill in the blank 2a63bcfa407807a_10 Total divisional selling and administrative expenses $fill in the blank 2a63bcfa407807a_11 $fill in the blank 2a63bcfa407807a_12 Operating income before support department allocations $fill in the blank 2a63bcfa407807a_13 $fill in the blank 2a63bcfa407807a_14 Support department allocations: Advertising expense $fill in the blank 2a63bcfa407807a_15 $fill in the blank 2a63bcfa407807a_16 Transportation expense fill in the blank 2a63bcfa407807a_17 fill in the blank 2a63bcfa407807a_18 Accounts receivable collection expense fill in the blank 2a63bcfa407807a_19 fill in the blank 2a63bcfa407807a_20 Warehouse expense fill in the blank 2a63bcfa407807a_21 fill in the blank 2a63bcfa407807a_22 Total support department allocations $fill in the blank 2a63bcfa407807a_23 $fill in the blank 2a63bcfa407807a_24 Operating income $fill in the blank 2a63bcfa407807a_25 $fill in the blank 2a63bcfa407807a_26 Provide supporting calculations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Total Advertising expense $fill in the blank 066fdbfecfd107b_1 $fill in the blank 066fdbfecfd107b_2 $fill in the blank 066fdbfecfd107b_3 Transportation rate per bill of lading $fill in the blank 066fdbfecfd107b_4 $fill in the blank 066fdbfecfd107b_5 Number of bills of lading fill in the blank 066fdbfecfd107b_6 fill in the blank 066fdbfecfd107b_7 Transportation expense $fill in the blank 066fdbfecfd107b_8 $fill in the blank 066fdbfecfd107b_9 $fill in the blank 066fdbfecfd107b_10 Accounts receivable collection rate $fill in the blank 066fdbfecfd107b_11 $fill in the blank 066fdbfecfd107b_12 Number of sales invoices fill in the blank 066fdbfecfd107b_13 fill in the blank 066fdbfecfd107b_14 Accounts receivable collection expense $fill in the blank 066fdbfecfd107b_15 $fill in the blank 066fdbfecfd107b_16 $fill in the blank 066fdbfecfd107b_17 Warehouse rate per sq. ft. $fill in the blank 066fdbfecfd107b_18 $fill in the blank 066fdbfecfd107b_19 Number of square feet fill in the blank 066fdbfecfd107b_20 fill in the blank 066fdbfecfd107b_21 Warehouse expense $fill in the blank 066fdbfecfd107b_22 $fill in the blank 066fdbfecfd107b_23 $fill in the blank 066fdbfecfd107b_24

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 9E: Championship Sports Inc. operates two divisionsthe Winter Sports Division and the Summer Sports...

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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	$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 headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $375,000; Summer Sports Division, $715,000.
Transportation expense—allocated to divisions at a rate of $4.00 per bill of lading: Winter Sports Division, 17,500 bills of lading; Summer Sports Division, 30,500 bills of lading.
Accounts receivable collection expense—incurred at headquarters, allocated to divisions at a rate of $1.00 per invoice: Winter Sports Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices.
Warehouse expense—allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 60,000 square feet; Summer Sports Division, 90,000 square feet.

Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required.

Championship Sports Inc.
Divisional Income Statements
For the Year Ended December 31, 20Y9
	Winter Sports Division	Summer Sports Division
Sales	$fill in the blank 2a63bcfa407807a_1	$fill in the blank 2a63bcfa407807a_2
Cost of goods sold	fill in the blank 2a63bcfa407807a_3	fill in the blank 2a63bcfa407807a_4
Gross profit	$fill in the blank 2a63bcfa407807a_5	$fill in the blank 2a63bcfa407807a_6
Divisional selling and administrative expenses:
Divisional selling expenses	$fill in the blank 2a63bcfa407807a_7	$fill in the blank 2a63bcfa407807a_8
Divisional administrative expenses	fill in the blank 2a63bcfa407807a_9	fill in the blank 2a63bcfa407807a_10
Total divisional selling and administrative expenses	$fill in the blank 2a63bcfa407807a_11	$fill in the blank 2a63bcfa407807a_12
Operating income before support department allocations	$fill in the blank 2a63bcfa407807a_13	$fill in the blank 2a63bcfa407807a_14
Support department allocations:
Advertising expense	$fill in the blank 2a63bcfa407807a_15	$fill in the blank 2a63bcfa407807a_16
Transportation expense	fill in the blank 2a63bcfa407807a_17	fill in the blank 2a63bcfa407807a_18
Accounts receivable collection expense	fill in the blank 2a63bcfa407807a_19	fill in the blank 2a63bcfa407807a_20
Warehouse expense	fill in the blank 2a63bcfa407807a_21	fill in the blank 2a63bcfa407807a_22
Total support department allocations	$fill in the blank 2a63bcfa407807a_23	$fill in the blank 2a63bcfa407807a_24
Operating income	$fill in the blank 2a63bcfa407807a_25	$fill in the blank 2a63bcfa407807a_26

Provide supporting calculations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.

Championship Sports Inc.
Support Department Allocations
For the Year Ended December 31, 20Y9
	Winter Sports Division	Summer Sports Division	Total
Advertising expense	$fill in the blank 066fdbfecfd107b_1	$fill in the blank 066fdbfecfd107b_2	$fill in the blank 066fdbfecfd107b_3
Transportation rate per bill of lading	$fill in the blank 066fdbfecfd107b_4	$fill in the blank 066fdbfecfd107b_5
Number of bills of lading	fill in the blank 066fdbfecfd107b_6	fill in the blank 066fdbfecfd107b_7
Transportation expense	$fill in the blank 066fdbfecfd107b_8	$fill in the blank 066fdbfecfd107b_9	$fill in the blank 066fdbfecfd107b_10
Accounts receivable collection rate	$fill in the blank 066fdbfecfd107b_11	$fill in the blank 066fdbfecfd107b_12
Number of sales invoices	fill in the blank 066fdbfecfd107b_13	fill in the blank 066fdbfecfd107b_14
Accounts receivable collection expense	$fill in the blank 066fdbfecfd107b_15	$fill in the blank 066fdbfecfd107b_16	$fill in the blank 066fdbfecfd107b_17
Warehouse rate per sq. ft.	$fill in the blank 066fdbfecfd107b_18	$fill in the blank 066fdbfecfd107b_19
Number of square feet	fill in the blank 066fdbfecfd107b_20	fill in the blank 066fdbfecfd107b_21
Warehouse expense	$fill in the blank 066fdbfecfd107b_22	$fill in the blank 066fdbfecfd107b_23	$fill in the blank 066fdbfecfd107b_24

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