ayes UIC PICIIL HITLI JCyunu, CONC. I IVUULLIVI HIGHQYcIs die poiu a Saidi y anu YCL an OUL se salary if the entire division meets or exceeds its target profits for the year. The bonus is determ Jual report has been prepared and issued to stockholders. ortly after the beginning of the new year, Mary received a phone call from Gary that went like this: ry: How's it going, Mary? ry: Fine, Gary. How's it going with you? ry: Great! I just got the preliminary profit figures for the division for last year and we are within $173,880 of making the year's target profits. All we have to do is pull a few strings, and we'll be over the top! mary: What do you mean? ary: Well, one thing that would be easy to change is your estimate of the percentage completion of your ending work in process inventories. Mary: I don't know if I can do that, Gary. Those percentage completion figures are supplied by Tom Winthrop, my lead supervisor, who I have always trusted to provide us with good estimates. Besides, I have already sent the percentage completion figures to corporate headquarters. Gary: You can always tell them there was a mistake. Think about it, Mary. All of us managers are doing as much as we can to pull this bonus out of the hat. You may not want the bonus check, but the rest of us sure could use it. The final processing department in Mary's production facility began the year with no work in process inven 350,000 units were transferred in from the prior processing department and 322,000 units were completed transferred in from the prior department totaled $82.250,000. No materials are added in the final processin $22.964 200 of conversion cost was incurred in the final processing department during the year. Required: 1. Tom Winthrop estimated that the units in ending work in process inventory in the final processing departme with respect to the conversion costs of the final processing department. If this estimate of the percentage con would be the cost of goods sold for the year? 2. Does Gary Stevens want the estimated percentage completion to be increased or decreased? 3. What percentage completion would result in increasing reported net operating income by $173,880 over the that would be reported if the 25% figure were used? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What percentage completion would result in increasing reported net operating income by $173,880 over the net operati income that would be reported the 25% figure were used? (Round cost per unit to 2 decimal places. Do not round oth intermediate calculations. Round your finalanswer to 2 decimal Places Percentage completion %