West Corporation reported the following consolidated data for20X2:
| |
Sales | $ | 834,000 | |
Consolidated income before taxes | | 129,000 | |
Total assets | | 1,210,000 | |
|
Data reported for West’s four operating divisions are asfollows:
| Division A | Division B | Division C | Division D |
Sales to outsiders | | $ | 290,000 | | | $ | 132,000 | | | $ | 350,000 | | | $ | 62,000 | |
Intersegment sales | | | 60,000 | | | | | | | | 14,000 | | | | 12,000 | |
Traceable costs | | | 246,000 | | | | 91,000 | | | | 291,000 | | | | 83,000 | |
Assets | | | 401,000 | | | | 106,000 | | | | 501,000 | | | | 76,000 | |
|
Intersegment sales are priced at cost, and all goods have beensubsequently sold to nonaffiliates. Some joint production costs areallocated to the divisions based on total sales. These joint costswere $46,000 in 20X2. The company’s corporate center had $21,000 ofgeneral corporate expenses and $121,000 of assets that the chiefoperating decision maker did not use in making the decisionregarding the operating segments.
Required:
Each of the following items is unrelated to the others.
a. The divisions are industry segments.
(1) Prepare a segmental disclosure worksheet for the company.(Do not round your intermediatecalculations.)
(2) Prepare schedules showing which segments are reportable.
b. Assume that each division operates in an individual geographicarea, Division A is in the domestic area, and each of the otherdivisions operates in a separate foreign country. Assume thatone-half of the assets in each geographic area representslong-lived, productive assets as defined in ASC 280. Prepareschedules showing which geographic areas are reportable using a 10percent materiality threshold.
c. Determine the amount of sales to an outside customer that wouldcause that customer to be classified as a major customer under thecriteria of ASC 280.
