Profit Center Responsibility Reporting

Glades Sporting Goods Co. operates two divisionsthe 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:

SalesWinter Sports Division	$33,915,000
SalesSummer Sports Division	37,468,000
Cost of Goods SoldWinter Sports Division	20,349,000
Cost of Goods SoldSummer Sports Division	21,641,000
Sales ExpenseWinter Sports Division	5,814,000
Sales ExpenseSummer Sports Division	5,168,000
Administrative ExpenseWinter Sports Division	3,391,500
Administrative ExpenseSummer Sports Division	3,326,900
Advertising Expense	924,000
Transportation Expense	489,000
Accounts Receivable Collection Expense	280,800
Warehouse Expense	3,230,000

The bases to be used in allocating expenses, together with other essential information, are as follows:

Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $434,000; Summer Sports Division, $490,000.

Transportation expensecharged back to divisions at a charge rate of $15 per bill of lading: Winter Sports Division, 15,500 bills of lading; Summer Sports Division, 17,100 bills of lading.

Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of $9 per invoice: Winter Sports Division, 14,400 sales invoices; Summer Sports Division, 16,800 sales invoices.

Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 150,000 square feet; Summer Sports Division, 190,000 square feet.

Question Content Area

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 Statements For the Year Ended December 31, 20Y8

	Winter Sports Division	Summer Sports Division
Sales	$fill in the blank 8b25080d0f9407c_1	$fill in the blank 8b25080d0f9407c_2
Cost of goods sold	fill in the blank 8b25080d0f9407c_3	fill in the blank 8b25080d0f9407c_4
Gross profit	$fill in the blank 8b25080d0f9407c_5	$fill in the blank 8b25080d0f9407c_6
Divisional selling and administrative expenses:	blank	blank
Divisional selling expenses	$fill in the blank 8b25080d0f9407c_7	$fill in the blank 8b25080d0f9407c_8
Divisional administrative expenses	fill in the blank 8b25080d0f9407c_9	fill in the blank 8b25080d0f9407c_10
Total divisional selling and administrative expenses	$fill in the blank 8b25080d0f9407c_11	$fill in the blank 8b25080d0f9407c_12
Income from operations before service department charges	$fill in the blank 8b25080d0f9407c_13	$fill in the blank 8b25080d0f9407c_14
Service department charges:
Advertising expense	$fill in the blank 8b25080d0f9407c_15	$fill in the blank 8b25080d0f9407c_16
Transportation expense	fill in the blank 8b25080d0f9407c_17	fill in the blank 8b25080d0f9407c_18
Accounts receivable collection expense	fill in the blank 8b25080d0f9407c_19	fill in the blank 8b25080d0f9407c_20
Warehouse expense	fill in the blank 8b25080d0f9407c_21	fill in the blank 8b25080d0f9407c_22
Total service department charges	$fill in the blank 8b25080d0f9407c_23	$fill in the blank 8b25080d0f9407c_24
Income from operations	$fill in the blank 8b25080d0f9407c_25	$fill in the blank 8b25080d0f9407c_26

Question Content Area

Provide 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 Charges For the Year Ended December 31, 20Y8

	Winter Sports Division	Summer Sports Division	Total
Advertising expense	$fill in the blank 5a839ffa2064078_1	$fill in the blank 5a839ffa2064078_2	$fill in the blank 5a839ffa2064078_3
Transportation rate per bill of lading	$fill in the blank 5a839ffa2064078_4	$fill in the blank 5a839ffa2064078_5
Number of bills of lading	fill in the blank 5a839ffa2064078_6	fill in the blank 5a839ffa2064078_7
Transportation expense	$fill in the blank 5a839ffa2064078_8	$fill in the blank 5a839ffa2064078_9	$fill in the blank 5a839ffa2064078_10
Accounts receivable collection rate	$fill in the blank 5a839ffa2064078_11	$fill in the blank 5a839ffa2064078_12
Number of sales invoices	fill in the blank 5a839ffa2064078_13	fill in the blank 5a839ffa2064078_14
Accounts receivable collection expense	$fill in the blank 5a839ffa2064078_15	$fill in the blank 5a839ffa2064078_16	$fill in the blank 5a839ffa2064078_17
Warehouse rate per sq. ft.	$fill in the blank 5a839ffa2064078_18	$fill in the blank 5a839ffa2064078_19
Number of square feet	fill in the blank 5a839ffa2064078_20	fill in the blank 5a839ffa2064078_21
Warehouse expense	$fill in the blank 5a839ffa2064078_22	$fill in the blank 5a839ffa2064078_23