King Company operates in 4 different industries, each of which is appropriately regarded as a reportable segment. Total sales for 2019 for all segments combined were $1,000,000. Sales for Segment 2 were $400,000, and the traceable costs were $150,000. Total common costs for all segments combined were $500,000. King allocates common costs based on the ratio of a segment’s sales to total sales, an appropriate method of allocation. The segment profit to be reported for Segment 2 for 2019 is _________. A. $ 50,000 B. $125,000 C. $200,000 D. $250,000

King Company operates in 4 different industries, each of which is appropriately regarded as a reportable segment. Total sales for 2019 for all segments combined were $1,000,000. Sales for Segment 2 were $400,000, and the traceable costs were $150,000. Total common costs for all segments combined were $500,000. King allocates common costs based on the ratio of a segment’s sales to total sales, an appropriate method of allocation. The segment profit to be reported for Segment 2 for 2019 is _________. A. $ 50,000 B. $125,000 C. $200,000 D. $250,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 6P: Arctic Software Inc. has two product lines. The income statement for the year ended December 31...

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In its 2021 financial statements, how much should YELLOW report as operating profit for Segment #1?
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8. Chicken Company has three lines of business, each of which was determined to be reportable segment. Chicken Company sales aggregated P15,000,000 in 2020 of which Segment Wings contributed 40%. Traceable costs were P3,500,000 for Segment Wings of a total of P10,000,000 for the company as a whole. For internal reporting, Chicken allocates common costs of P3,000,000 based on the ratio of a segment’s income before common costs.In its 2020 financial statements, how much should Chicken report as operating profit for Segment Wings?
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Dukko Company has 3 lines of businesses, each of which is a significant segment. Company salesaggregated to $1,800,000 in 2020, of which Segment 3 contributed 60%. Traceable costs were $600,000for Segment 3 from a total of $1,200,000 for the company as a whole. In addition, $350,000 of commoncosts are allocated in the ratio of a segment’s income before common costs to the total income beforecommon costs. For Segment 3, Dukko should report a 2020 segment profit of ______________.A. $200,000B. $270,000C. $280,000D. $480,000
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