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: Advertising expense—incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $252,000; Summer Sports Division, $326,000. Transportation expense—charged back to divisions at a charge rate of $7.40 per bill of lading: Winter Sports Division, 17,200 bills of lading; Summer Sports Division, 18,700 bills of lading. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $6.00 per invoice: Winter Sports Division, 11,500 sales invoices; Summer Sports Division, 17,500 sales invoices. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 102,000 square feet; Summer Sports Division, 118,000 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. 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 be8211ff5ffffc6_1 $fill in the blank be8211ff5ffffc6_2 Cost of goods sold fill in the blank be8211ff5ffffc6_3 fill in the blank be8211ff5ffffc6_4 Gross profit $fill in the blank be8211ff5ffffc6_5 $fill in the blank be8211ff5ffffc6_6 Divisional selling expenses $fill in the blank be8211ff5ffffc6_7 $fill in the blank be8211ff5ffffc6_8 Divisional administrative expenses fill in the blank be8211ff5ffffc6_9 fill in the blank be8211ff5ffffc6_10 Operating expenses $fill in the blank be8211ff5ffffc6_11 $fill in the blank be8211ff5ffffc6_12 Income from operations before service department charges $fill in the blank be8211ff5ffffc6_13 $fill in the blank be8211ff5ffffc6_14 Less service department charges: Advertising expense $fill in the blank be8211ff5ffffc6_15 $fill in the blank be8211ff5ffffc6_16 Transportation expense fill in the blank be8211ff5ffffc6_17 fill in the blank be8211ff5ffffc6_18 Accounts receivable collection expense fill in the blank be8211ff5ffffc6_19 fill in the blank be8211ff5ffffc6_20 Warehouse expense fill in the blank be8211ff5ffffc6_21 fill in the blank be8211ff5ffffc6_22 Total service department charges $fill in the blank be8211ff5ffffc6_23 $fill in the blank be8211ff5ffffc6_24 Income from operations $fill in the blank be8211ff5ffffc6_25 $fill in the blank be8211ff5ffffc6_26 Provide supporting calculations for service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Glades Sporting Goods Co. Supporting Calculations For the Year Ended December 31, 20Y8 Winter Sports Division Summer Sports Division Total Advertising expense $fill in the blank a3b8e2f97ff1059_1 $fill in the blank a3b8e2f97ff1059_2 $fill in the blank a3b8e2f97ff1059_3 Transportation rate per bill of lading $fill in the blank a3b8e2f97ff1059_4 $fill in the blank a3b8e2f97ff1059_5 Number of bills of lading fill in the blank a3b8e2f97ff1059_6 fill in the blank a3b8e2f97ff1059_7 Transportation expense $fill in the blank a3b8e2f97ff1059_8 $fill in the blank a3b8e2f97ff1059_9 $fill in the blank a3b8e2f97ff1059_10 Accounts receivable collection rate $fill in the blank a3b8e2f97ff1059_11 $fill in the blank a3b8e2f97ff1059_12 Number of sales invoices fill in the blank a3b8e2f97ff1059_13 fill in the blank a3b8e2f97ff1059_14 Accounts receivable collection expense $fill in the blank a3b8e2f97ff1059_15 $fill in the blank a3b8e2f97ff1059_16 $fill in the blank a3b8e2f97ff1059_17 Warehouse rate per sq. ft. $fill in the blank a3b8e2f97ff1059_18 $fill in the blank a3b8e2f97ff1059_19 Number of square feet fill in the blank a3b8e2f97ff1059_20 fill in the blank a3b8e2f97ff1059_21 Warehouse expense $fill in the blank a3b8e2f97ff1059_22 $fill in the blank a3b8e2f97ff1059_23 $fill in the blank a3b8e2f97ff1059_24

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: Advertising expense—incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $252,000; Summer Sports Division, $326,000. Transportation expense—charged back to divisions at a charge rate of $7.40 per bill of lading: Winter Sports Division, 17,200 bills of lading; Summer Sports Division, 18,700 bills of lading. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $6.00 per invoice: Winter Sports Division, 11,500 sales invoices; Summer Sports Division, 17,500 sales invoices. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 102,000 square feet; Summer Sports Division, 118,000 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. 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 be8211ff5ffffc6_1 $fill in the blank be8211ff5ffffc6_2 Cost of goods sold fill in the blank be8211ff5ffffc6_3 fill in the blank be8211ff5ffffc6_4 Gross profit $fill in the blank be8211ff5ffffc6_5 $fill in the blank be8211ff5ffffc6_6 Divisional selling expenses $fill in the blank be8211ff5ffffc6_7 $fill in the blank be8211ff5ffffc6_8 Divisional administrative expenses fill in the blank be8211ff5ffffc6_9 fill in the blank be8211ff5ffffc6_10 Operating expenses $fill in the blank be8211ff5ffffc6_11 $fill in the blank be8211ff5ffffc6_12 Income from operations before service department charges $fill in the blank be8211ff5ffffc6_13 $fill in the blank be8211ff5ffffc6_14 Less service department charges: Advertising expense $fill in the blank be8211ff5ffffc6_15 $fill in the blank be8211ff5ffffc6_16 Transportation expense fill in the blank be8211ff5ffffc6_17 fill in the blank be8211ff5ffffc6_18 Accounts receivable collection expense fill in the blank be8211ff5ffffc6_19 fill in the blank be8211ff5ffffc6_20 Warehouse expense fill in the blank be8211ff5ffffc6_21 fill in the blank be8211ff5ffffc6_22 Total service department charges $fill in the blank be8211ff5ffffc6_23 $fill in the blank be8211ff5ffffc6_24 Income from operations $fill in the blank be8211ff5ffffc6_25 $fill in the blank be8211ff5ffffc6_26 Provide supporting calculations for service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Glades Sporting Goods Co. Supporting Calculations For the Year Ended December 31, 20Y8 Winter Sports Division Summer Sports Division Total Advertising expense $fill in the blank a3b8e2f97ff1059_1 $fill in the blank a3b8e2f97ff1059_2 $fill in the blank a3b8e2f97ff1059_3 Transportation rate per bill of lading $fill in the blank a3b8e2f97ff1059_4 $fill in the blank a3b8e2f97ff1059_5 Number of bills of lading fill in the blank a3b8e2f97ff1059_6 fill in the blank a3b8e2f97ff1059_7 Transportation expense $fill in the blank a3b8e2f97ff1059_8 $fill in the blank a3b8e2f97ff1059_9 $fill in the blank a3b8e2f97ff1059_10 Accounts receivable collection rate $fill in the blank a3b8e2f97ff1059_11 $fill in the blank a3b8e2f97ff1059_12 Number of sales invoices fill in the blank a3b8e2f97ff1059_13 fill in the blank a3b8e2f97ff1059_14 Accounts receivable collection expense $fill in the blank a3b8e2f97ff1059_15 $fill in the blank a3b8e2f97ff1059_16 $fill in the blank a3b8e2f97ff1059_17 Warehouse rate per sq. ft. $fill in the blank a3b8e2f97ff1059_18 $fill in the blank a3b8e2f97ff1059_19 Number of square feet fill in the blank a3b8e2f97ff1059_20 fill in the blank a3b8e2f97ff1059_21 Warehouse expense $fill in the blank a3b8e2f97ff1059_22 $fill in the blank a3b8e2f97ff1059_23 $fill in the blank a3b8e2f97ff1059_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

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 expense—incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $252,000; Summer Sports Division, $326,000.
Transportation expense—charged back to divisions at a charge rate of $7.40 per bill of lading: Winter Sports Division, 17,200 bills of lading; Summer Sports Division, 18,700 bills of lading.
Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $6.00 per invoice: Winter Sports Division, 11,500 sales invoices; Summer Sports Division, 17,500 sales invoices.
Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 102,000 square feet; Summer Sports Division, 118,000 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.

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 be8211ff5ffffc6_1	$fill in the blank be8211ff5ffffc6_2
Cost of goods sold	fill in the blank be8211ff5ffffc6_3	fill in the blank be8211ff5ffffc6_4
Gross profit	$fill in the blank be8211ff5ffffc6_5	$fill in the blank be8211ff5ffffc6_6
Divisional selling expenses	$fill in the blank be8211ff5ffffc6_7	$fill in the blank be8211ff5ffffc6_8
Divisional administrative expenses	fill in the blank be8211ff5ffffc6_9	fill in the blank be8211ff5ffffc6_10
Operating expenses	$fill in the blank be8211ff5ffffc6_11	$fill in the blank be8211ff5ffffc6_12
Income from operations before service department charges	$fill in the blank be8211ff5ffffc6_13	$fill in the blank be8211ff5ffffc6_14
Less service department charges:
Advertising expense	$fill in the blank be8211ff5ffffc6_15	$fill in the blank be8211ff5ffffc6_16
Transportation expense	fill in the blank be8211ff5ffffc6_17	fill in the blank be8211ff5ffffc6_18
Accounts receivable collection expense	fill in the blank be8211ff5ffffc6_19	fill in the blank be8211ff5ffffc6_20
Warehouse expense	fill in the blank be8211ff5ffffc6_21	fill in the blank be8211ff5ffffc6_22
Total service department charges	$fill in the blank be8211ff5ffffc6_23	$fill in the blank be8211ff5ffffc6_24
Income from operations	$fill in the blank be8211ff5ffffc6_25	$fill in the blank be8211ff5ffffc6_26

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

Glades Sporting Goods Co.
Supporting Calculations
For the Year Ended December 31, 20Y8
	Winter Sports Division	Summer Sports Division	Total
Advertising expense	$fill in the blank a3b8e2f97ff1059_1	$fill in the blank a3b8e2f97ff1059_2	$fill in the blank a3b8e2f97ff1059_3
Transportation rate per bill of lading	$fill in the blank a3b8e2f97ff1059_4	$fill in the blank a3b8e2f97ff1059_5
Number of bills of lading	fill in the blank a3b8e2f97ff1059_6	fill in the blank a3b8e2f97ff1059_7
Transportation expense	$fill in the blank a3b8e2f97ff1059_8	$fill in the blank a3b8e2f97ff1059_9	$fill in the blank a3b8e2f97ff1059_10
Accounts receivable collection rate	$fill in the blank a3b8e2f97ff1059_11	$fill in the blank a3b8e2f97ff1059_12
Number of sales invoices	fill in the blank a3b8e2f97ff1059_13	fill in the blank a3b8e2f97ff1059_14
Accounts receivable collection expense	$fill in the blank a3b8e2f97ff1059_15	$fill in the blank a3b8e2f97ff1059_16	$fill in the blank a3b8e2f97ff1059_17
Warehouse rate per sq. ft.	$fill in the blank a3b8e2f97ff1059_18	$fill in the blank a3b8e2f97ff1059_19
Number of square feet	fill in the blank a3b8e2f97ff1059_20	fill in the blank a3b8e2f97ff1059_21
Warehouse expense	$fill in the blank a3b8e2f97ff1059_22	$fill in the blank a3b8e2f97ff1059_23	$fill in the blank a3b8e2f97ff1059_24

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