Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 9, Problem 9E
To determine
Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
Service department charges: These are the indirect expenses incurred by profit center. These are charged for the services received by the department or division, based on the activity base of the service department.
To prepare: The income statements for WS Division and SS Division of GS Goods for the year ended December 31, 20Y8
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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
Sales-Summer Sports Division
Cost of Goods Sold-Winter Sports Division
Cost of Goods Sold-Summer Sports Division
Sales Expense-Winter Sports Division
Sales Expense-Summer Sports Division
Administrative Expense-Winter Sports Division
Administrative Expense-Summer Sports Division
Advertising Expense
Transportation Expense
$36,907,500
40,774,000
22,144,500
23,550,500
6,327,000
5,624,000
3,690,800
3,620,500
935,000
447,000
228,800
3,515,000
Accounts Receivable Collection Expense
Warehouse Expense
The bases to be used in allocating expenses, together with other information, are as follows:
a. Advertising…
Profit Center Responsibility Reporting
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
$29,295,000
Sales—Summer Sports Division
32,364,000
Cost of Goods Sold—Winter Sports Division
17,577,000
Cost of Goods Sold—Summer Sports Division
18,693,000
Sales Expense—Winter Sports Division
5,022,000
Sales Expense—Summer Sports Division
4,464,000
Administrative Expense—Winter Sports Division
2,929,500
Administrative Expense—Summer Sports Division
2,873,700
Advertising Expense
1,012,000
Transportation Expense
435,000
Accounts Receivable Collection Expense
250,200
Warehouse Expense
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The bases to be used in allocating expenses, together with other essential…
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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…
Chapter 9 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 9 - Differentiate between centralized and...Ch. 9 - Differentiate between a profit center and an...Ch. 9 - Prob. 3DQCh. 9 - What is the major shortcoming of using operating...Ch. 9 - In a decentralized company in which the divisions...Ch. 9 - How does using the return on investment facilitate...Ch. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - When using the negotiated price approach to...
Ch. 9 - Budgetary performance for cost center Vinton...Ch. 9 - Support department allocations The centralized...Ch. 9 - Prob. 3BECh. 9 - Profit margin, investment turnover, and ROI Briggs...Ch. 9 - Residual income The Commercial Division of Galena...Ch. 9 - Prob. 6BECh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - For each of the following support departments,...Ch. 9 - Prob. 4ECh. 9 - Service department charges In divisional income...Ch. 9 - Service department charges and activity bases...Ch. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17ECh. 9 - Prob. 18ECh. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Prob. 1PACh. 9 - Profit center responsibility reporting for a...Ch. 9 - Prob. 3PACh. 9 - Effect of proposals on divisional performance A...Ch. 9 - Divisional performance analysis and evaluation The...Ch. 9 - Prob. 6PACh. 9 - Prob. 1PBCh. 9 - Prob. 2PBCh. 9 - Prob. 3PBCh. 9 - Prob. 4PBCh. 9 - Prob. 5PBCh. 9 - Prob. 6PBCh. 9 - Prob. 1ADMCh. 9 - Prob. 2ADMCh. 9 - Prob. 3ADMCh. 9 - Prob. 1TIFCh. 9 - Prob. 2TIFCh. 9 - Communication The Norse Division of Gridiron...
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