Lloyd Corporation reports the following information for 20X8 for its three operating segments:
Indirect operating expenses are allocated to segments based upon the ratio of each segment's traceable operating expenses to total traceable operating expenses.Interest expense is allocated to segments based upon the ratio of each segment's sales to total sales.
Required:
a)Calculate the operating profit or loss for each of the segments for 20X8.
b)Determine which segments are reportable,applying the operating profit or loss test.

Problem 71 (continued):

Question

Lloyd Corporation reports the following information for 20X8 for its three operating segments:
Indirect operating expenses are allocated to segments based upon the ratio of each segment's traceable operating expenses to total traceable operating expenses.Interest expense is allocated to segments based upon the ratio of each segment's sales to total sales.
Required:
a)Calculate the operating profit or loss for each of the segments for 20X8.
b)Determine which segments are reportable,applying the operating profit or loss test.

Problem 71 (continued):

Quizplus · Accepted Answer

The Answer of Lloyd Corporation reports the following information for 20X8 for its three operating segments:
Indirect operating expenses are allocated to segments based upon the ratio of each segment's traceable operating expenses to total traceable operating expenses.Interest expense is allocated to segments based upon the ratio of each segment's sales to total sales.
Required:
a)Calculate the operating profit or loss for each of the segments for 20X8.
b)Determine which segments are reportable,applying the operating profit or loss test.

Problem 71 (continued):

Lloyd Corporation Reports the Following Information for 20X8 for Its