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Please put it in excel spreadsheet with calculations. Thank you Problem 2: Job Costing vs ABC (40 points) Sunset Grocery is expanding their store and
Please put it in excel spreadsheet with calculations. Thank you
Problem 2: Job Costing vs ABC (40 points) Sunset Grocery is expanding their store and is looking to add space to one of three areas. The decision will be based on the profitability of the departments. They have the following data available: Produce $325,000 $195,000 25,000 300 250 Frozen $825,000 $495,000 225,000 700 1,500 5,000 Deli Total $1,650,000 $990,000 312,500 1,600 2,500 10,000 Revenues Cost of Goods Sold # of Items Sold # of Purchase Orders # of Deliveries Hours of Shelf Time $500,000 $300,000 62,500 600 750 4,000 1,000 Currently indirect costs are allocated based on the number of items sold. Indirect costs are as follows: Ordering Costs Delivery Costs Shelf Stocking Costs $ 30,000 $125,000 $ 95.000 Total Indirect Costs 00 $250,000 Required 1. Prepare an income statement broken out by department, including totals using traditional job costing. 2. Prepare an income statement broken out by department, including totals using ABC with the following cost allocations: Ordering Costs: Delivery Costs Shelf Stocking Costs based on # of purchase orders based on # of deliveries based on the # of hours of shelf time 1. 2. 3. 3. Type a brief summary explaining your results and which department would be entitled to a bonus based on profitabilityStep by Step Solution
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