Business Assignment 5 - Percentage Completion The two worksheets show the production report for the Tropical Break corporation. Assume you are the cost accountant at Tropical Break. The production department tells you that the units in work in process are 25% complete for conversion costs and you prepare the production report accordingly. The report is shown in the worksheet labeled "Process Cost Report 25%". Joe from Sales tells you that the production department is incorrect and that work in process is 40% complete for conversion costs. You know that Joe receives a bonus based upon the operating income of the company. You revise the production report. The report is shown in the worksheet labeled, "Process Cost Report 40%." Assume that all goods that are completed and transferred are sold and that sales for the year were $80,000,000. Req.

1 Complete the following schedule (4 points): Using 25% Using 40% Completion Completion Sales Cost of goods sold Gross profit Req.

2: Why does Joe want you to use the 40% completion number? (2 points) Req.

3: It is interesting to note that even though you are a cost accountant, you can still impact the operating income of the company. As a cost accountant, what should you do in this situation? Use 2 complete sentences. (2 points) Req.

4: Read the information about Rynco Scientific Corporation included below. Does this change your answer to #3 above? What can you conclude about the importance of the percentage completion number? Use complete sentences. (2 points).

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