Spein Company is a diversified company that discloses supplemental financial information on its segments. The following information is available for 2019: Sales $)( Traceable costs ($) Allocable costs ($) Segment X 400,000 225,000 Segment Y 300,000 240,000 Segment Z 200,000 135,000 Total 900,000 600,000 150,000 Allocable costs are assigned based on the ratio of a segment’s income before allocable costs to total income before allocable costs. This is an appropriate method of allocation. Segment Y’s profit for 2019 is

Spein Company is a diversified company that discloses supplemental financial information on its segments. The following information is available for 2019: Sales $)( Traceable costs ($) Allocable costs ($) Segment X 400,000 225,000 Segment Y 300,000 240,000 Segment Z 200,000 135,000 Total 900,000 600,000 150,000 Allocable costs are assigned based on the ratio of a segment’s income before allocable costs to total income before allocable costs. This is an appropriate method of allocation. Segment Y’s profit for 2019 is

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 2P

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Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
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Word Corporation, a publicly owned corporation, is subject to the requirements for segment reporting. In its statement of comprehensive income for the year ending July 31, 2021, Word reported revenues of$50M, operating expenses of $47M and net income of $3M. Operating expenses included payroll costs of $15M. Word’s combined assets of all segments at July 31, 2020 were $40M. In its 2021 financial statements, Word should disclose major customer data if sales to any singlecustomer amount to at least _____________________.A. $ 300,000B. $1,500,000C. $4,000,000D. $5,000,000
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