7b

Greg, the production manager for the Forming Department approached Martha, the production manager for the Packaging Department regarding the company's profit targets for the year ending May 31st. Based on preliminary profit figures, the company is within $25,000 of the month's target profit. Greg has asked Martha to pull a few strings to assure they will reach their target such that all employees will receive a bonus. Greg indicates that Martha can just change her estimate of the percentage completion of her ending work in process inventories. Martha is unsure. Greg says that he has worked hard to keep costs down in his department and does not want to lose his bonus because Martha could not keep her department under control.

If Martha changes the completion percent for Other direct material and conversion costs the equivalent units of production calculation will change. Update the table below for these 2 cost categories assuming Martha were to changes the estimated percentage completion by 10 in the desired direction. (For example; if % completion is 50%, increase by 10 to 60% or decrease by 10 to 40%)

Units completed and transferred out Ending work in process - units Total units Conversion Costs of beginning work in process Cost per equivalent unit of production (show 4 decimal places) ___