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comes along rarely and she believed tltat she 1rvrrauld grow into it. Ms Alverez is the cost accounting specialist assigned to the nishing department of
comes along rarely and she believed tltat she 1rvrrauld grow into it. Ms Alverez is the cost accounting specialist assigned to the nishing department of Standard Tool Company. Bill Sawyer. the manager of tire nishing department. knows exactly what he is doing. In each of the three years he has managed the department. the cost per unit of product transferred out of his Work in Process Inventory account has declined. His ability to control cost is highly valued. and it is widely believed that he will be the successor to the plant manager, wlto is being protttoted to manufacturing vice president. Due more good year would surely seal the deal for Mr. Sawyer. It was little stander that Ms. Aherez was uncomfortable in challenging Mr. Saw-eds estimate of the percentage of completion of the department's ending inventory. He contended that the inventorywas ED percent complete, but she believed that it was only about dill percent complete. After a hriefattercation. Ms. Alvarez agreed to sigrt o'on Mr. Sawyer's estimate. The truth was that although site believed she vras right. she did not know how to support her position. Besides. Mr. Sawyer was about to be named plant manager. and she felt it unwise to challenge such an important person. The department had beginning inventory of 5.5m units of product and it started assoc units during the period. It transferred out sauce units during the period. Total transferred-in and production cost for the period was SWEADEI. Ihis amount included the cost in beginning inventory pins additional costs incurred during the period. The target (standard) cost per ttrtit is $9.45. Determine the equivalent cost per unit. assuming that the ending inventory is considered to be 40 percent complete. Determine the equivalent cost per unit. assuming that the ending inventory is considered to he Iii] percent complete. Comment on Mr. Sawer's motives for establishing the percentage ofeompletion at GD percent rather than an percent
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