ACCT week7 homework
Es-d
ACCT557_W7_HW_Questions.docxHomework – Week 7 – Chapter 24
Problem 1:
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Plastics Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2016. |
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Sales revenue |
Cost of goods sold |
Operating expenses |
Total expenses |
Operating profit (loss) |
Identifiable assets |
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Bottles |
$ 65,000 |
$ 26,000 |
$8,000 |
$ 34,000 |
$31,000 |
$ 66,000 |
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Containers |
$ 95,000 |
$ 62,000 |
$ 48,000 |
$ 110,000 |
$ (15,000) |
$ 80,000 |
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Dollhouses |
$ 620,000 |
$ 353,000 |
$140,000 |
$ 493,000 |
$ 127,000 |
$ 640,000 |
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Silverware |
$18,000 |
$ 8,000 |
$ 6,500 |
$14,500 |
$3,500 |
$36,000 |
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Sales of segments Containers and Dollhouses included intersegment sales of $30,000 and $150,000, respectively. |
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Required: |
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Determine which of the segments are reportable based on the following: |
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Revenue Test |
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Operating profit (loss) test |
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Identifiable assets test |
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Problem 2:
