three exercises job costing abc overhead allocation and keep or drop decision 444979

TransTutors.com  Assignment     Exercise  1:  Job  Costing     • Exercise  5 ­ 41.  Do  required  parts  2,  4,  and  5  only.   • Journal  entries  are  NOT  required.   • Note  that  work ­ in ­ process  inventory  consists  of  jobs  not  completed  at  the   end  of  the  month  and  finished  goods  inventory  consists  of  jobs  compelted  but   not  sold  at  the  end  of  the  month.Exercise  2:  ABC  Overhead  Allocation     • Exercise  7 ­ 39.  Answer  all  required  parts.Exercise  3:  Keep  or  Drop  Decision     • Case  13 ­ 52.  Using  the  information  in  the  case,  answer  the  following   questions:   o Identify  each  of  the  following  items  as  relevant  or  irrelevant  for  the   decision  whether  to  keep  or  drop  the  division.  Briefly  explain  why   each  item  is  revenant  or  irrelevant.   ! Sales  revenue   ! Purchase  of  the  part  from  an  external  supplier   ! Fixed  overhead  to  produce  the  product   ! Fixed  selling  and  administrative  expenses   ! Prime  cost  to  produce  the  product   o Prepare  an  analysis  to  help  the  president  decide  whether  to  show   down  the  division.  Show  your  calculations.