Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, lowa, while Gary manages the plant in El Segundo, California Production managers are paid a salary and get an additional bonus equal to 10% of their base salary if the entire division meets or exceeds its target profits for the year. The bonus is determined in March after the company's annual report has been prepared and issued to stockholders Shortly after the beginning of the new year, Mary received a phone call from Gary that went like this Gary: How's it going, Mary? Mary: Fine, Gary. How's it going with you? Gary: Great! I just got the preliminary profit figures for the division for last year and we are within $78,080 of making the yean's target profits. All we have to do is pull a few strings, and we'11 be over the top! your ending work in process inventories. Winthrop, my lead supervisor, who I have always trusted to provide us with good estimates Mary: What do you mean? Gary: Wel1, one thing that would be easy to change is your estimate of the percentage completion of Mary: I don't know if I can do that, Gary. Those percentage completion figures are supplied by Tom 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, A1l 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 inventory During the year 330,000 units were transferred in from the prior processing department and 300,000 units were completed and sold. Costs transterred in from the orior department toteled $76.560000 No matenials are added in the final processina department. A total of