14 Exercise 8-46 (Algo) Operation Costing: Ethical Issues (LO 8-8) 5 incs Brokia Electronics manufactures three cell phone models, which differ only in the components included: Basic, Photo, and Urlife. Production takes place in two departments, Assembly and Special Packaging, The Basic and Photo models are complete after Assembly. The Uruffe model goes from Assembly to Special Packaging and is completed there. Data for July are shown in the following table Conversion costs are allocated based on the number of units produced. There are no work in process inventories Sleped Tatal $2,400,000 Basic (40.000 units) $ 492,000 Photo (38,000 units) $1,212,000 Urtife (10,000 units) $ 696,00 ebook Materials Conversion costs Assembly Special Packaging Total conversion costs References 52,268,000 612,000 $2,880,000 Required: a. What is the cost per unit transferred to finished goods inventory for each of the three phones in July b. The Urlife model is sold only to the government on a cost plus basis. The marketing vice president suggests that conversion costs in Assembly could be allocated on the basis of material costs so he can offer a lower price for the Basic model. 1. What cost would be reported for the three models in the marketing vice president's suggestion is adopted? 2. Would this be ethical? Assume the conversion costs are not related to material dollars. Complete this question by entering your answers in the tabs below. Reg A Reg 1 Reg 02 What is the cost per unit transferred to finished goods inventory for each of the three phones in July? (Do not round intermediate calculations. Round your answers to z decimal places 74 Conversion costs Assembly Special Packaging Total conversion costs $2,265,000 612,000 $2,830,000 Clopped Required: a. What is the cost per unit transferred to finished goods inventory for each of the three phones in July? b. The Urlife model is sold only to the government on a cost-plus basis. The marketing vice president suggests that conversion costs in Assembly could be allocated on the basis of material costs so he can offer a lower price for the Basic model 1. What cost would be reported for the three models of the marketing vice president's suggestion is adopted? 2. Would this be ethical? Assume the conversion costs are not related to material dollars eBook Complete this question by entering your answers in the tabs below. ferences Reg A Req B1 Reg B2 What is the cost per unit transferred to finished goods inventory for each of the three phones in July (Do not round intermediate calculations. Round your answers to 2 decimal places) Cost Per Unit Basic Photo UrLife Reg Di > Uce 14 Conversion costs: Assembly Special Packaging Total conversion costs $2,268,000 612, $2,888, 5 ipped Required: a. What is the cost per unit transferred to finished goods Inventory for each of the three phones in July? b. The Urlife model is sold only to the government on a cost-plus basis. The marketing vice president suggests that conversion costs in Assembly could be allocated on the basis of material costs so he can offer a lower price for the Basic model 1. What cost would be reported for the three models if the marketing vice president's suggestion is adopted? 2. Would this be ethical? Assume the conversion costs are not related to material dollars. Book Complete this question by entering your answers in the tabs below. erences Thea Bi Reg A Reg B2 The UrLife model is sold only to the government on a cost-plus basis. The marketing vice president suggests that conversion costs in Assembly could be allocated on the basis of material costs so he can offer a lower price for the Basic model. What cost would be reported for the three models if the marketing vice president's suggestion is adopted? (Do not round intermediate calculations. Round your answers to 2 decimal placa Show less Cost Per Unit Basic Photo UrLife Per 141 33 Next > h08 Practice Savon 14 Conversion costs Assembly Special Packaging Total conversion costs 32,268,000 612,00 $2,880,000 ins Skipped Required: What is the cost per unit transferred to finished goods Inventory for each of the three phones in July b. The Urlife model is sold only to the government on a cost-plus basis. The marketing vice president suggests that corwersion costs in Assembly could be allocated on the basis of material costs so he can offer a lower price for the Basic model 1. What cost would be reported for the three models of the marketing vice president's suggestion is adopted? 2. Would this be ethical? Assume the conversion costs are not related to material dollars, eBook Complete this question by entering your answers in the tabs below. eferences Rog Reg 1 [ The Urlife model is sold only to the government on a cost plus basis. The marketing vice president suggests that conversion costs in Assembly could be allocated on the basis of material costs so he can offer a lower price for the Basic model. Would this be ethical? Assume the conversion costs are not related to material dollars. Ethical Not ethical