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onnie Villareal is a nard-aring production manager, and is neavinly Tocused on cost contalnment, labor efficiency, and quality control. She spends most of her time on the factory floor concentrating on opera- tional details of the Components Assembly Division. Bonnie always carries a 3"X 5"notepad, and maintains meticulous notes on expenditures for raw materials, direct labor, and factory overhead items. Periodically, she compares her notes to account balances within the company-wide accounting system, and she is quite satisfied that these costs are being accurately captured within the records of the company. Employees in Bonnie's production area are required to prepare monthly inventory reports. These counts are submitted to the Management Reporting Department. Bonnie is confident that there is no inventory spoilage or theft, and she keeps a close eye on the available stock to make sure nothing runs out. Indeed, she has spent the last quarter driving down inventory levels that she believes have been much higher than necessary. She has read about the benefits of reduced investments in inventory, and aspires to achieve "just in time inventory levels. Because of Bonnie's tight hands-on control, she fails to see the benefit of the monthly inventory reports, and has been relatively uninvolved with this process. She has made no secret of her disdain for the monthly inventory report, which she refers to as "inefficient bureaucratic nonsense that takes away available time from production activities." Below are the dollar values of inventory reported by employees for each month Spreadsheet Monthly Inventory Values Components Assembly Division 4 Beginning raw materials 5 Ending raw materials 6 Beginning work in process 7 Ending work in process 8 Beginning finished goods 9 Ending finished goods January 500,000 700,000 1,000,000 900,000 2,000,000 1,500,000 February 700,000 400,000 900,000 800,000 1,500,000 1,100,000 March $400,000 200,000 800,000 750,000 1,100,000 800,000 Bonnie recently emailed the management reporting department, indicating great frustration with the monthly gross profit reports produced. In her email, she complains that despite the account balances being correct in the corporate ledger, the monthly gross profit reports have been wrong for her area for each of the last three months. She is unhappy because she gets a quarterly bonus based upon the gross profit rate onnie Villareal is a nard-aring production manager, and is neavinly Tocused on cost contalnment, labor efficiency, and quality control. She spends most of her time on the factory floor concentrating on opera- tional details of the Components Assembly Division. Bonnie always carries a 3"X 5"notepad, and maintains meticulous notes on expenditures for raw materials, direct labor, and factory overhead items. Periodically, she compares her notes to account balances within the company-wide accounting system, and she is quite satisfied that these costs are being accurately captured within the records of the company. Employees in Bonnie's production area are required to prepare monthly inventory reports. These counts are submitted to the Management Reporting Department. Bonnie is confident that there is no inventory spoilage or theft, and she keeps a close eye on the available stock to make sure nothing runs out. Indeed, she has spent the last quarter driving down inventory levels that she believes have been much higher than necessary. She has read about the benefits of reduced investments in inventory, and aspires to achieve "just in time inventory levels. Because of Bonnie's tight hands-on control, she fails to see the benefit of the monthly inventory reports, and has been relatively uninvolved with this process. She has made no secret of her disdain for the monthly inventory report, which she refers to as "inefficient bureaucratic nonsense that takes away available time from production activities." Below are the dollar values of inventory reported by employees for each month Spreadsheet Monthly Inventory Values Components Assembly Division 4 Beginning raw materials 5 Ending raw materials 6 Beginning work in process 7 Ending work in process 8 Beginning finished goods 9 Ending finished goods January 500,000 700,000 1,000,000 900,000 2,000,000 1,500,000 February 700,000 400,000 900,000 800,000 1,500,000 1,100,000 March $400,000 200,000 800,000 750,000 1,100,000 800,000 Bonnie recently emailed the management reporting department, indicating great frustration with the monthly gross profit reports produced. In her email, she complains that despite the account balances being correct in the corporate ledger, the monthly gross profit reports have been wrong for her area for each of the last three months. She is unhappy because she gets a quarterly bonus based upon the gross profit rate