A. Prepare an segment margin (or division margin) income statement that more accurately reflects the division's profit performance given the numbers reported originally. (Hint: do not change any of the given numbers, but reformat, splitting fixed costs into direct and common) B. Using the segment margin income statement in A, now adjust for relevant information given in the facts and create a new segment margin income statement based on relevant numbers. (Hint: be clear to show your work for the adjustments from A to B) C. Given what you did in B, what is the net effect of dropping the division

Mesa company produces wooden rocking chairs. the company has two production departments, cutting and assembly. the wood is cut and sanded in cutting and then transferred to assembly to be assembled and painted. from assembly, the chairs are transferred to finished goods inventory and then are sold.mesa has compiled the following information for the month of february: cutting department assemblydepartmentdirect materials $ 73,000 $ 13,000direct labor 73,000 108,000applied manufacturing overhead 159,000 171,000cost of goods completed and transferred out 233,000 255,000required: 1, 2, 3, & 4. prepare journal entries for the transactions in the cutting and assembly departments of mesa company. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)