Segment reporting by division
Grecian Products, Inc., has two divisions, Athens and Sparta. For the month ended March 31, Athens had sales and variable costs of $500,000 and $225,000, respectively, and Sparta had sales and variable costs of $800,000 and $475,000, respectively. Athens had direct fixed production and administrative expenses of $60,000 and $35,000, respectively, and Sparta had direct fixed production and administrative expenses of $80,000 and $45,000, respectively. Fixed costs that were common to both divisions and couldnât be allocated to the divisions in any meaningful way were selling, $33,000, and administration, $27,000. Prepare a segmented income statement by division for the month of March.
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