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.

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.

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.

Lloyd Corporation Reports the Following Information for 20X8 for Its