Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales revenues of $270,000, variable expenses of $150,000, and traceable fixed expenses of $34,000. During the same month, the West business segment had sales revenues of $940,000, variable expenses of $492,000, and traceable fixed expenses of $179,000. The common fixed expenses totaled $266,000 and were allocated as follows: $133,000 to the East business segment and $133,000 to the West business segment. The contribution margin of the West business segment is: Multiple Choice $448,000 $573,000 $86,000 $(37,000)

Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales revenues of $270,000, variable expenses of $150,000, and traceable fixed expenses of $34,000. During the same month, the West business segment had sales revenues of $940,000, variable expenses of $492,000, and traceable fixed expenses of $179,000. The common fixed expenses totaled $266,000 and were allocated as follows: $133,000 to the East business segment and $133,000 to the West business segment. The contribution margin of the West business segment is: Multiple Choice $448,000 $573,000 $86,000 $(37,000)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales revenues of $390,000, variable expenses of $210,000, and traceable fixed expenses of $46,000. During the same month, the West business segment had sales revenues of $1,060,000, variable expenses of $540,000, and traceable fixed expenses of $203,000. The common fixed expenses totaled $314,000 and were allocated as follows: $157,000 to the East business segment and $157,000 to the West business segment. The contribution margin of the West business segment is: Multiple Choice $520,000 O $(39,000) O $717,000 O $134,000
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Colorway Inc. had total assets of P65,000,000 at year end and provided the following condensed income statement for the current year: Sales 45,000,000 Expenses (33,000,000) Income before income tax 12,000,000 Income tax expense (3,800,000) Net Income 8,200,000 The entity has two reportable segments and has developed the following related information: Segment A Segment B Others Sales 25,000,000 15,000,000 5,000,000 Segment expenses 18,000,000 9,000,000 4,000,000 Segment assets 35,000,000 18,000,000 7,000,000 The total assets of P65,000,000 include general corporate assets of P5,000,000. The total segment expenses of P33,000,000 include general corporate expenses of P2,000,000. The chief operating decision maker does not allocate income tax as a measure of profit or loss. Required: 1 Prepare the necessary disclosures for Colorway Inc. in relation to operating segments. 2 Prepare the reconciliations between segment information and amount shown in the entity's financial statements.
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