Profit Center Responsibility ReportingChampionship 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$8,900,000Sales—Summer Sports Division16,400,000Cost of Goods Sold—Winter Sports Division5,000,000Cost of Goods Sold—Summer Sports Division9,000,000Sales Expense—Winter Sports Division650,000Sales Expense—Summer Sports Division1,200,000Administrative Expense—Winter Sports Division800,000Administrative Expense—Summer Sports Division1,450,000Advertising Expense1,090,000Transportation Expense192,000Accounts Receivable Collection Expense68,000Warehouse Expense1,800,000 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 $1.00 per invoice: Winter Sports Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices.Warehouse expense—allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 60,000 square feet; Summer Sports Division, 90,000 square feet.Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required.Championship Sports Inc.Divisional Income StatementsFor the Year Ended December 31, 20Y9 Winter Sports DivisionSummer Sports DivisionSales$fill in the blank 5552cc076ffd069_1$fill in the blank 5552cc076ffd069_2Cost of goods soldfill in the blank 5552cc076ffd069_3fill in the blank 5552cc076ffd069_4Gross profit$fill in the blank 5552cc076ffd069_5$fill in the blank 5552cc076ffd069_6Divisional selling and administrative expenses: Divisional selling expenses$fill in the blank 5552cc076ffd069_7$fill in the blank 5552cc076ffd069_8Divisional administrative expensesfill in the blank 5552cc076ffd069_9fill in the blank 5552cc076ffd069_10Total divisional selling and administrative expenses$fill in the blank 5552cc076ffd069_11$fill in the blank 5552cc076ffd069_12Operating income before support department allocations$fill in the blank 5552cc076ffd069_13$fill in the blank 5552cc076ffd069_14Support department allocations: Advertising expense$fill in the blank 5552cc076ffd069_15$fill in the blank 5552cc076ffd069_16Transportation expensefill in the blank 5552cc076ffd069_17fill in the blank 5552cc076ffd069_18Accounts receivable collection expensefill in the blank 5552cc076ffd069_19fill in the blank 5552cc076ffd069_20Warehouse expensefill in the blank 5552cc076ffd069_21fill in the blank 5552cc076ffd069_22Total support department allocations$fill in the blank 5552cc076ffd069_23$fill in the blank 5552cc076ffd069_24Operating income$fill in the blank 5552cc076ffd069_25$fill in the blank 5552cc076ffd069_26Provide supporting calculations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.Championship Sports Inc.Support Department AllocationsFor the Year Ended December 31, 20Y9 Winter Sports DivisionSummer Sports DivisionTotalAdvertising expense$fill in the blank e0ba860cbfc203e_1$fill in the blank e0ba860cbfc203e_2$fill in the blank e0ba860cbfc203e_3Transportation rate per bill of lading$fill in the blank e0ba860cbfc203e_4$fill in the blank e0ba860cbfc203e_5 Number of bills of ladingfill in the blank e0ba860cbfc203e_6fill in the blank e0ba860cbfc203e_7 Transportation expense$fill in the blank e0ba860cbfc203e_8$fill in the blank e0ba860cbfc203e_9$fill in the blank e0ba860cbfc203e_10Accounts receivable collection rate$fill in the blank e0ba860cbfc203e_11$fill in the blank e0ba860cbfc203e_12 Number of sales invoicesfill in the blank e0ba860cbfc203e_13fill in the blank e0ba860cbfc203e_14 Accounts receivable collection expense$fill in the blank e0ba860cbfc203e_15$fill in the blank e0ba860cbfc203e_16$fill in the blank e0ba860cbfc203e_17Warehouse rate per sq. ft.$fill in the blank e0ba860cbfc203e_18$fill in the blank e0ba860cbfc203e_19 Number of square feetfill in the blank e0ba860cbfc203e_20fill in the blank e0ba860cbfc203e_21 Warehouse expense$fill in the blank e0ba860cbfc203e_22$fill in the blank e0ba860cbfc203e_23$fill in the blank e0ba860cbfc203e_24

Question

Profit Center Responsibility ReportingChampionship 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$8,900,000Sales—Summer Sports Division16,400,000Cost of Goods Sold—Winter Sports Division5,000,000Cost of Goods Sold—Summer Sports Division9,000,000Sales Expense—Winter Sports Division650,000Sales Expense—Summer Sports Division1,200,000Administrative Expense—Winter Sports Division800,000Administrative Expense—Summer Sports Division1,450,000Advertising Expense1,090,000Transportation Expense192,000Accounts Receivable Collection Expense68,000Warehouse Expense1,800,000 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 $1.00 per invoice: Winter Sports Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices.Warehouse expense—allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 60,000 square feet; Summer Sports Division, 90,000 square feet.Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required.Championship Sports Inc.Divisional Income StatementsFor the Year Ended December 31, 20Y9 Winter Sports DivisionSummer Sports DivisionSales$fill in the blank 5552cc076ffd069_1$fill in the blank 5552cc076ffd069_2Cost of goods soldfill in the blank 5552cc076ffd069_3fill in the blank 5552cc076ffd069_4Gross profit$fill in the blank 5552cc076ffd069_5$fill in the blank 5552cc076ffd069_6Divisional selling and administrative expenses:  Divisional selling expenses$fill in the blank 5552cc076ffd069_7$fill in the blank 5552cc076ffd069_8Divisional administrative expensesfill in the blank 5552cc076ffd069_9fill in the blank 5552cc076ffd069_10Total divisional selling and administrative expenses$fill in the blank 5552cc076ffd069_11$fill in the blank 5552cc076ffd069_12Operating income before support department allocations$fill in the blank 5552cc076ffd069_13$fill in the blank 5552cc076ffd069_14Support department allocations:  Advertising expense$fill in the blank 5552cc076ffd069_15$fill in the blank 5552cc076ffd069_16Transportation expensefill in the blank 5552cc076ffd069_17fill in the blank 5552cc076ffd069_18Accounts receivable collection expensefill in the blank 5552cc076ffd069_19fill in the blank 5552cc076ffd069_20Warehouse expensefill in the blank 5552cc076ffd069_21fill in the blank 5552cc076ffd069_22Total support department allocations$fill in the blank 5552cc076ffd069_23$fill in the blank 5552cc076ffd069_24Operating income$fill in the blank 5552cc076ffd069_25$fill in the blank 5552cc076ffd069_26Provide supporting calculations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.Championship Sports Inc.Support Department AllocationsFor the Year Ended December 31, 20Y9 Winter Sports DivisionSummer Sports DivisionTotalAdvertising expense$fill in the blank e0ba860cbfc203e_1$fill in the blank e0ba860cbfc203e_2$fill in the blank e0ba860cbfc203e_3Transportation rate per bill of lading$fill in the blank e0ba860cbfc203e_4$fill in the blank e0ba860cbfc203e_5 Number of bills of ladingfill in the blank e0ba860cbfc203e_6fill in the blank e0ba860cbfc203e_7 Transportation expense$fill in the blank e0ba860cbfc203e_8$fill in the blank e0ba860cbfc203e_9$fill in the blank e0ba860cbfc203e_10Accounts receivable collection rate$fill in the blank e0ba860cbfc203e_11$fill in the blank e0ba860cbfc203e_12 Number of sales invoicesfill in the blank e0ba860cbfc203e_13fill in the blank e0ba860cbfc203e_14 Accounts receivable collection expense$fill in the blank e0ba860cbfc203e_15$fill in the blank e0ba860cbfc203e_16$fill in the blank e0ba860cbfc203e_17Warehouse rate per sq. ft.$fill in the blank e0ba860cbfc203e_18$fill in the blank e0ba860cbfc203e_19 Number of square feetfill in the blank e0ba860cbfc203e_20fill in the blank e0ba860cbfc203e_21 Warehouse expense$fill in the blank e0ba860cbfc203e_22$fill in the blank e0ba860cbfc203e_23$fill in the blank e0ba860cbfc203e_24

Accepted Answer

Given that:

Sales—Winter Sports Division
$8,900,000

Sales—Summer Sports Division
16,400,000…

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

Championship Sports Inc.
Divisional Income Statements
For the Year Ended December 31, 20Y9
	Winter Sports Division	Summer Sports Division
Sales	$fill in the blank 5552cc076ffd069_1	$fill in the blank 5552cc076ffd069_2
Cost of goods sold	fill in the blank 5552cc076ffd069_3	fill in the blank 5552cc076ffd069_4
Gross profit	$fill in the blank 5552cc076ffd069_5	$fill in the blank 5552cc076ffd069_6
Divisional selling and administrative expenses:
Divisional selling expenses	$fill in the blank 5552cc076ffd069_7	$fill in the blank 5552cc076ffd069_8
Divisional administrative expenses	fill in the blank 5552cc076ffd069_9	fill in the blank 5552cc076ffd069_10
Total divisional selling and administrative expenses	$fill in the blank 5552cc076ffd069_11	$fill in the blank 5552cc076ffd069_12
Operating income before support department allocations	$fill in the blank 5552cc076ffd069_13	$fill in the blank 5552cc076ffd069_14
Support department allocations:
Advertising expense	$fill in the blank 5552cc076ffd069_15	$fill in the blank 5552cc076ffd069_16
Transportation expense	fill in the blank 5552cc076ffd069_17	fill in the blank 5552cc076ffd069_18
Accounts receivable collection expense	fill in the blank 5552cc076ffd069_19	fill in the blank 5552cc076ffd069_20
Warehouse expense	fill in the blank 5552cc076ffd069_21	fill in the blank 5552cc076ffd069_22
Total support department allocations	$fill in the blank 5552cc076ffd069_23	$fill in the blank 5552cc076ffd069_24
Operating income	$fill in the blank 5552cc076ffd069_25	$fill in the blank 5552cc076ffd069_26

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 e0ba860cbfc203e_1	$fill in the blank e0ba860cbfc203e_2	$fill in the blank e0ba860cbfc203e_3
Transportation rate per bill of lading	$fill in the blank e0ba860cbfc203e_4	$fill in the blank e0ba860cbfc203e_5
Number of bills of lading	fill in the blank e0ba860cbfc203e_6	fill in the blank e0ba860cbfc203e_7
Transportation expense	$fill in the blank e0ba860cbfc203e_8	$fill in the blank e0ba860cbfc203e_9	$fill in the blank e0ba860cbfc203e_10
Accounts receivable collection rate	$fill in the blank e0ba860cbfc203e_11	$fill in the blank e0ba860cbfc203e_12
Number of sales invoices	fill in the blank e0ba860cbfc203e_13	fill in the blank e0ba860cbfc203e_14
Accounts receivable collection expense	$fill in the blank e0ba860cbfc203e_15	$fill in the blank e0ba860cbfc203e_16	$fill in the blank e0ba860cbfc203e_17
Warehouse rate per sq. ft.	$fill in the blank e0ba860cbfc203e_18	$fill in the blank e0ba860cbfc203e_19
Number of square feet	fill in the blank e0ba860cbfc203e_20	fill in the blank e0ba860cbfc203e_21
Warehouse expense	$fill in the blank e0ba860cbfc203e_22	$fill in the blank e0ba860cbfc203e_23	$fill in the blank e0ba860cbfc203e_24