Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows:Ecru does not allocate its $1,460,000 in common expenses to the various segments.Perform testing procedures to determine Ecru’s reportable operating segments. PlasticsMetalsLumberPaper$422150FinanceSales to outside partiesIntersegment transfersInterest income fromoutside parties ....$6,694148$2,354173$711138$-0--0-3442-0-21-0-...... MetalsLumberPaperFinancePlasticsInterest income fromintersegment loans...Operating expenses..Interest expense.Tangible assetsIntangible assetsIntersegment loans (debt) ..-0-1,066-0--0-654282014,2141,762761,50187313,1964031021796652477163-0--0--0-706-0--0--0-

Cost accounting system: Cost accounting system can be defined as a framework designed by the…

Answered: Plastics Metals Lumber Paper $422 150…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows:
Ecru does not allocate its $1,460,000 in common expenses to the various segments.
Perform testing procedures to determine Ecru’s reportable operating segments.

Plastics
Metals
Lumber
Paper
$422
150
Finance
Sales to outside parties
Intersegment transfers
Interest income from
outside parties ....
$6,694
148
$2,354
173
$711
138
$-0-
-0-
34
42
-0-
21
-0-
......

Metals
Lumber
Paper
Finance
Plastics
Interest income from
intersegment loans...
Operating expenses..
Interest expense.
Tangible assets
Intangible assets
Intersegment loans (debt) ..
-0-
1,066
-0-
-0-
654
28
201
4,214
1,762
76
1,501
87
31
3,196
403
102
179
66
524
771
63
-0-
-0-
-0-
706
-0-
-0-
-0-

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