Practice 9- Ch 8 Segment and Interim Reporting

Practice 9 Ch 8 - 6,425 $ 3,975 $2,450 $(reportable Loss Metals 2,294 1,628 666(reportable Lumber 738 967 229 Paper 455 610 155 Finance 186 103 83

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1 Ch 8: Segment and Interim Reporting Two Practice Problems: 8-33 and 8-35 Solutions: Problem 1: 8 – 33 . Determine COGS in Interim Period under LIFO with LIFO Liquidation Solution: C (5 minutes) 5,000 units x $80 = $400,000 300 units x $82 = 5,300 units $424,600 24,600 Problem 2: 8 - 35. Apply the Three Tests Necessary to Determine Reportable Operating Segments Revenue Test (numbers in thousands) (25 minutes) Segment Revenues Plastics $ 6,425 63.7% (reportable) Percentage Metals 2,294 22.7% (reportable) Lumber 738 7.3% Paper 455 4.5% Finance 186 Total $10,098 100.0% 1.8%
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2 Profit or Loss Test (numbers in thousands) Segment Revenues Expenses Profit Plastics $
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Unformatted text preview: 6,425 $ 3,975 $2,450 $ (reportable) Loss Metals 2,294 1,628 666 (reportable) Lumber 738 967 229 Paper 455 610 155 Finance 186 103 83 Total $3,199 $384 Since $3,199 is larger in absolute terms than $384, it will serve as the basis for testing. Each of the profit or loss figures will be compared to $319.90 (10% x $3,199). Asset Test (numbers in thousands) Segment Assets Plastics $1,363 21.3% (reportable) Percentage Metals 3,347 52.3% (reportable) Lumber 314 4.9% Paper 609 9.5% Finance 768 12.0% Total $6,401 100.0% (reportable) The plastics, metals, and finance segments meet at least one of the three tests and therefore are reportable....
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This note was uploaded on 02/22/2012 for the course ACCT 501 taught by Professor Ma during the Spring '11 term at South Carolina.

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Practice 9 Ch 8 - 6,425 $ 3,975 $2,450 $(reportable Loss Metals 2,294 1,628 666(reportable Lumber 738 967 229 Paper 455 610 155 Finance 186 103 83

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