Exam 8: Segment and Interim Reporting

REFERENCE: Ref.08_15 The following information for Urbanski Corporation relates to the three months ending June 30,2009: Urbanski uses the LIFO method to account for inventory,and expects at least 15,000 units to be on hand in the ending inventory at year-end.Purchases made in the last six months are expected to cost an average of $18 per unit. -Compute cost of goods sold and gross profit for the quarter ending June 30,2009.

Crookman Co.had several operating segments,including Segment O.Segment O had never met the requirements to be separately reported.During 2008,Segment O's revenue and operating profit were higher than the ten percent threshold due to a labor strike against its primary competitor.The strike ended early in 2009.How should Crookman Co.have reported Segment O for 2008?

Which of the following costs require similar treatment to Property Tax Expense in an interim financial report? 1)Annual major repairs. 2)Advertising expense. 3)Bonus expense,if estimable. 4)Quantity discounts based on annual sales.

REFERENCE: Ref.08_02 The Fratilo Co.had three operating segments with the following information: In addition,revenues generated at corporate headquarters are $1,400. -Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements? (I) )Revenue from external customers. (II) )Total Segment Assets (III. )Revenues from foreign customers,identified by country.

What is the purpose of the FASB's seventy-five percent requirement for industry segments?

How much of this expense should be included in Cleveland's net income for the quarter ending March 31,2008?

How does a company measure income tax expense to be reported in an interim period?

Betsy Kirkland,Inc.incurred a flood loss during the first quarter of 2009 that is deemed both unusual and infrequent.The loss is considered immaterial to the twelve-month period,but is material in amount relative to the first quarter.The proper accounting treatment in the first quarterly interim statement is to:

Vapor Corporation has a fan products operating segment.Which of the following items does Vapor not have to report for this segment?

REFERENCE: Ref.08_06 Peterson Corporation has three operating segments with the following information: In addition,revenues generated at corporate headquarters are $2,000. -According to the revenues test,which segment(s)are separately reportable?

REFERENCE: Ref.08_11 Faru Co.identified five industry segments: (1)plastics, (2)metals, (3)lumber, (4)paper,and (5)finance.Each of these segments had been consolidated appropriately by the company in producing its annual financial statements.Information describing each segment is presented below (in thousands). In addition,Faru Co.had $1,625,000 in common expenses that are not allocated to the various segments. -Prepare the revenue test to determine which of these segments was separately reportable.

REFERENCE: Ref.08_10 Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2008.Baker has an effective income tax rate of 30 percent and 100,000 shares of common stock issued and outstanding.The following additional information is available: -Assuming Baker makes the change in the first quarter of 2008 and that $400,000 net income is earned during the second quarter,how much is reported as net income for the second quarter of 2008?

REFERENCE: Ref.08_01 Natarajan,Inc.had the following operating segments,with the indicated amounts of segment revenues and segment expenses: -According to the revenue test,which segments would require disaggregation?

REFERENCE: Ref.08_3 Retro Corp.was engaged solely in manufacturing operations.The following data pertain to the operating segments for 2008: SHAPE \* MERGEFORMAT -What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

How should contingencies be reported in an interim report?

Which of the following statements is true regarding the determination of operating segments under SFAS 131?

REFERENCE: Ref.08_07 Elektronix,Inc.has three operating segments with the following information: In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000. -What is the operating profit or loss for the VCRs segment?

The following items are required to be disclosed for each operating segment except:

REFERENCE: Ref.08_13 Gregor,Inc. ,uses the LIFO cost-flow assumption to value inventory.Inventory for Gregor on January 1,2008 was 100 units at a LIFO cost of $25 per unit.During the first quarter of 2008,200 units were purchased costing an average of $40 per unit,and sales of 265 units at a retail price of $50 per unit were made. -Assuming Gregor does not expect to replace the units of beginning inventory sold,what is the amount of cost of goods sold for the quarter ended March 31,2008?

REFERENCE: Ref.08_10 Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2008.Baker has an effective income tax rate of 30 percent and 100,000 shares of common stock issued and outstanding.The following additional information is available: -Assuming Baker makes the change in the first quarter of 2008,how much is reported as net income for the first quarter of 2007?