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0 You skipped this quetion in the previous attempt Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics

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0 You skipped this quetion in the previous attempt Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, lowa, while Gary manages the plant in Ei Segundo, California. Production managers are paid a salary and get an additional bonus equal to 10% of their base salary if the entire division meets or exceeds its target profits for the year. The bonus is determined in March after the company's annual report has been prepared and issued to stockholders Shortly after the beginning of the new year, Mary received a phone call from Gary that went like this: Gary: How"s it going, Kary? Mary: rine, Gary. Bov"a it going with you? Garys Greati I jast got the preliminary protit figares for the division for last year and ve re within $158,460 of making the year's target profits. All ve have to do is palla few gtrinqe, and we'll be over th topi Maryi What do you mean? Gary- Well, one thing that would be easy to change is your estimate of the percentage completion of your ending vork in proceas inveatorLea Marys don't know if I cas do that, Gary- Those percestage eoepletios figures are supplted by Ton winthrop, ty lead supervisor, who I havelways trusted to provide us with good estinates. Beaides, I have already sent the peroentage comptetion figures to corporate Garys You can always tel1 them there asa mistake. Thinkabout it, Mary. A of managers are doing as mooh as ve can to pall this bonus out of t bosu check, but the rest of ua surn could use it. ha. Tou may net want the The final processing department in Mary's production facility began the year with no work in process inventory. During the yea 300,000 units were transferred in from the prior processing department and 278,000 units were completed and sold. Costs transferred in from the prior depertment totaled $55,500,000. No materials are added in the final processing department. A total of $19,958,400 of conversion cost was incurred in the final processing department during the year Prex 3 of 3 Next 4 6 8 WE 0

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