Question: West Corporation reported the following
West Corporation reported the following consolidated data for 20X2:
Data reported for West’s four operating divisions are as follows:
Intersegment sales are priced at cost, and all goods have been subsequently sold to non-affiliates. Some joint production costs are allocated to the divisions based on total sales. These joint costs were $45,000 in 20X2. The company’s corporate center had $20,000 of general corporate expenses and $120,000 of assets that the chief operating decision maker did not use in making the decision regarding the operating segments.
Required:
Each of the following items is unrelated to the others.
The divisions are industry segments.
(1) Prepare a segmental disclosure worksheet for the company.
(2) Prepare schedules showing which segments are reportable. b. Assume that each division operates in an individual geographic area, Division A is in the domestic area, and each of the other divisions operates in a separate foreign country. Assume that one-half of the assets in each geographic area represents long-lived, productive assets as defined in ASC 280. Prepare schedules showing which geographic areas are reportable using a 10 percent materiality threshold.
c. Determine the amount of sales to an outside customer that would cause that customer to be classified as a major customer under the criteria of ASC 280.
Transcribed Image Text:
$ 810,000 128,000 1,200,000 Sales Consolidated income before taxes Total assets Division A Division B Division C Division D $280,000 60,000 245,000 400,000 $130,000 $340,000 18,000 290,000 500,000 $60,000 12,000 82,000 75,000 Sales to outsiders Intersegment sales Traceable costs 90,000 105,000 Assets
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