92%(38)35 out of 38 people found this document helpful
This preview shows page 94 - 99 out of 276 pages.
a.350,000b.345,000c.411,000d.406,00011.)Eagle Company operates in several different industries. Total sales for EagleCompany totaled P14,000,000, and total common costs amounted to P6,500,000 for thecurrent year. For internal reporting purposes, Eagle Company allocated common costsbased on the ratio of a segment’s sales to total sales. Additional information regarding thedifferent segments follows:SegmentContribution to total salesCosts specific to the segment125%1,100,000
212%1,000,000331%1,300,000423%880,00059%400,000What is the profit of Segment 1?a.3,500,000b.1,875,000c.2,400,000d.775,00012.)Congo Company provided the following data for the current year:Sales60,000,000Cost of goods sold28,000,000Expenses14,000,000Depreciation4,000,000Income tax expenses4,000,000The entity has two major reportable segments, X and Y. An analysis revealed that P1,000,000 ofthe total depreciation expense and P2,000,000 of the expenses are related to general corporateactivities. The remaining expenses and sales are directly allocable to segment activities accordingto the following percentages:Segment XSegment YOthersSales40% 45% 15%Cost of goods sold3550 15Expenses 40 40 20
Depreciation 40 45 15What amount should be reported as profit of Segment X?a.8,200,000b.6,600,000c.7,000,000d.5,400,00013.)Revlon Company has expanded rapidly and segment reporting is now required.The following data are for the year ended December 31, 2013:OperatingSegment Operating IdentifiableSegment revenue profit (loss) assets1620,000200,000400,0002100,00020,00080,0003340,00070,000300,0004190,000( 30,000)140,0005180,000( 25,000)180,000670,00010,000120,0007120,000( 20,000)140,000Others380,000( 25,000)140,000The “others” category includes five operating segments, none of which has revenue orassets greater than P80,000 and none with an operating profit.Operating Segments 1 and 2 produce very similar products and use very similarproduction process, butt serve different customer types and use quite different productdistribution system. These differences are due in part to the fact that segment 2 operatesin a regulated environment while segment 1 does not.
Operating segments 6 and 7 have very similar products, production processes, productdistribution systems, but are organized as separate divisions since they serve substantiallydifferent types of customers. Neither Segments 6 and 7 operate in a regulatedenvironment.What are the reportable segments for the year ended December 31, 2013?a.Segments 1, 3, 4 and 5b.Segments 1, 3, 4, 5 and 7c.Segments 1, 2, 3, 4 and 5d.Segments 1, 3, 4, 5 and Segments 6 and 7 combined as one segmentINTERIM REPORTING 1.)Farr Company had the following transactions during the quarter ended March 31, 2013.Loss from typhoon700,000Payment of fire insurance premium for calendar year 2013100,000What amount should be included in the income statement for the quarter ended March 31, 2013?Casualty lossInsurance expensea.700,000100,000b.700,00025,000c.175,00025,000d.0100,0002.)Harper Company incurred an inventory loss from market decline of P840,000 on June 30,2013. What amount of the inventory loss should be recognized in the quarterly incomestatement for the three months ended June 30, 2013?
a.210,000b.280,000c.420,000d.840,0003.)Wilma Company experienced a P500,000 decline in the market value of inventory at theend of the first quarter. The entity had expected this declined to reverse in the second