Determine which of the segments are reportable based


Plastics Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013.

Sales revenue Cost of goods sold Operating expenses

  • Bottles $ 65,000 $ 26,000 $8,000
  • Containers $ 95,000 $ 62,000 $ 48,000
  • Dollhouses $ 620,000 $ 353,000 $140,000
  • Silverware $18,000 $ 8,000 $ 6,500

Sales of segments Containers and Dollhouses included intersegment sales of $30,000 and $150,000, respectively.
Required

  • Determine which of the segments are reportable based on the following:
  • Revenue Test
  • Operating profit (loss) test
  • Identifiable assets test

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Accounting Basics: Determine which of the segments are reportable based
Reference No:- TGS0707221

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