Question

Diego company manufactures one product that is sold for $76 per unit into geographic regions the east and west regions. The following information pertains to the companies first year of operations in which a produce 47,000 units installed 42,000 units. The company sold 32,000 units in the East region and 10,000 units in the West region. It determined that $210,000 of its fix selling in a minute straight of expense is traceable to the West region, $160,000 is traceable to the east region, and the remaining 105 thousand is calm and fix expense. The company will continue to think you’re a total amount of it’s fixed manufacturing overhead cost as long as it continues to produce any amount of its only product.
Prepare a contribution format segmented income statement that includes a total column and columns for the east and west regions.

Answer 1

Answer:

$\left[\begin{array}{cccc}&West&East&Total\\ Sales&2,432,000&760,000&3,192,000\\ Traceable Fixed&-210,000&-160,000&-370,000\\ Business Fixed Cost&&&-105,000\\ Income&2,222,000&600,000&2,717,000\\\end{array}\right]$

Explanation:

The units sold on each region should be multiply by the $76 unit selling price.

Then, we subtract the fixed selling expense tracable to each division

and then, we subtract to the whole company the common fixed cost.