Davis company recently employed a production manger who has been working with the company for three years. The production manager receives an annul performance-based bonus that is determined by how well he controls the cost of production in the production department. The reduction in cost of production will also reduced the cost of goods sold, with the result that operating profit of the company would be increased. During the second year of his employment, the production manager did not receive any bonus due to the higher cost of goods sold than was budgeted. The production manager has now devised a scheme to ensure that he receives his annual bonus in year three. The manager is aware that if he increases the level of inventory significantly at the end of the year, it will reduce the cost of goods sold figure and therefore, increasing both and net profit. gross The manager therefore, decided to ask the production workers to work overtime in the last few weeks before the year end stock taking to make as many c