Bismac Industries is a diversified company whose operations are conducted in five product lines, L, M, N,
Question:
Additional Information:
1. In addition to the identifiable assets listed, the general corporate office has assets of $90,000 on December 31, 2008, and incurred unallocated amounts related to corporate headquarters of: interest expense $1,000, depreciation expense $2,000.
2. Included in the sales of segment P are $15,000 of sales made to segment N during the year. None of these goods remains in the ending inventory of segment N on December 31, 2008. There were no capital expenditures during the year. 3. No single customer represented more than 10% of sales.
Required:
A. Determine which of the five segments must be treated as reportable segments and indicate the basis for your decision. Assume segments are defined based on product line.
B. Prepare a financial report by segments that is reconciled to consolidateddata.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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