Prepare a working paper to compute revenue and segment profit or loss for each segment. Nontracable expenses are allocated using the follow percentages: Alpha 27%; Beta 33%; Gamma 40%.
Data for the three operating segments of Polyglot Company for the fiscal year ended June 30, 2006 were as follows (amounts in thousands):
Alpha Beta Gamma Total
Sales to outside customers $400 $500 $600 $1,500
Intersegmental sale 50 40 30 120
Traceable Expenses
Intersegmental purchases 60 20 40 120
Other 200 300 500 1,000
Nontraceable expenses 150
Prepare a working paper to compute revenue and segment profit or loss for each segment. Nontracable expenses are allocated using the follow percentages: Alpha 27%; Beta 33%; Gamma 40%.
Segmented income statement refers to the technique used in managerial accounting. It segregates the income details based on the individual segments pertaining to the entity. It follows the pattern of beginning from revenue followed by deducting expenses to arrive at net income.
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