Segment Analysis Business can be classified by regions, products or services, types of customers and more; each classification is treated as one segment of the business. Revenues earned from different segments individually are called segment revenue. Segment revenues are determined from the invoiced data entered into the accounting system. Segment analysis is done to analyze the contribution of different segments to the total operating performance of the company. It is done with the help of horizontal and vertical comparisons. Vertical analysis: Vertical analysis is the method of financial statement analysis, and it is useful for evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement. To prepare: The vertical analysis statement of the product segment revenue.

Question

During May, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 52,000 were in process in the production department at the beginning of May, and 210,000 were started and completed in May. May's beginning inventory units were 40% complete with respect to materials and 60% complete with respect to labor. Compute the number of units transferred to finished goods. I need solution

Answer 1

Question

Chapter 5, Problem 5.26EX

(a)

To determine

Segment Analysis

Business can be classified by regions, products or services, types of customers and more; each classification is treated as one segment of the business. Revenues earned from different segments individually are called segment revenue. Segment revenues are determined from the invoiced data entered into the accounting system. Segment analysis is done to analyze the contribution of different segments to the total operating performance of the company. It is done with the help of horizontal and vertical comparisons.

Vertical analysis:

Vertical analysis is the method of financial statement analysis, and it is useful for evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement.

To prepare: The vertical analysis statement of the product segment revenue.

(b)

To determine

To analyze: The product segment of TCF Incorporation, and discuss about the diversified or concentrated within the product segment revenue.

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