Problem

Segment Reporting Worksheet and SchedulesWest Corporation reported the following consolida...

Segment Reporting Worksheet and Schedules

West Corporation reported the following consolidated data for 20X2:

Sales

$ 810,000

Consolidated income before taxes

128,000

Total assets

1,200,000

Data reported for West’s four operating divisions are as follows:

 

Division A

Division B

Division C

Division D

Sales to outsiders

$280,000

$130,000

$340,000

$60,000

Intersegment sales

60,000

 

18,000

12,000

Traceable costs

245,000

90,000

290,000

82,000

Assets

400,000

105,000

500,000

75,000

Intersegment sales are priced at cost, and all goods have been subsequently sold to nonaffili- ates. Some joint production costs are allocated to the divisions based on total sales. These joint costs were $45,000 in 20X2. The company’s corporate center had $20,000 of general corporate expenses and $120,000 of assets that the chief operating decision maker did not use in decision making regarding the operating segments.

Required

Each of the following items is unrelated to the others.

a.The divisions are industry segments.

(1) Prepare a segmental disclosure worksheet for the company.

(2) Prepare schedules showing which segments are reportable.


b.Assume that each division operates in an individual geographic area and Division A is in the domestic area and the other divisions each operates in a separate foreign country. Assume that one-half of the assets in each geographic area represents long-lived, productive assets as defined in FASB 131 (ASC 280). Prepare schedules showing which geographic areas are reportable using a 10 percent materiality threshold.


c.Determine the amount of sales to an outside customer that would cause that outside customer to be classified as a major customer under the criteria of FASB 131 (ASC 280).

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 13