Problem

The sales in thousands of dollars of the segments of Wow Corporation (Wow is organized on...

The sales in thousands of dollars of the segments of Wow Corporation (Wow is organized on a geographic basis) for 2011 are as follows:

 

Unaffiliated Sales

Intersegment Sales

Total

United States

$100,000

$30,000

$130,000

Canada

36,000

16,000

52,000

Europe

20,000

2,000

22,000

Latin America

14,000

6,000

20,000

Japan

6,000

6,000

Korea

2,000

2,000

 

$178,000

$54,000

$232,000

The $178,000 sales to unaffiliated customers is the amount of revenue reported in Wow’s consolidated income statement.

REQUIRED: Illustrate the disclosure of Wow’s domestic and foreign revenue in a form acceptable for external reporting, including reconciliation with consolidated revenue.

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Solutions For Problems in Chapter 15