Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with this problem. Thank you! 6 Chrome File Edit View History Bookmarks People Tab Window Help M MHE Reader 0' i pIayeriuimheducatiomcom

I need help with this problem. Thank you!

image text in transcribed
6 Chrome File Edit View History Bookmarks People Tab Window Help M MHE Reader 0' i pIayeriuimheducatiomcom Rene' Alverez knew she was in over her head soon after she took the job. Even so, the opportunity for promotion comes along rarely and she believed that she would grow into it. Ms. Alverez is the cost accounting specialist assigned to the nishing department of Standard Tool Company. Bill Sawyer. the manager of the 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, who is being promoted to manufacturing vice president. One more good year would surely seal the deal for Mr. Sawyer. It was little wonder that Ms. Alverez was uncomfortable in challenging Mr. Sawyer's estimate of the percentage of completion of the department's ending inventory. He contended that the inventory was 60 percent complete, but she believed that it was only about 40 percent complete. Alter a brief altercation, Ms. Alverez agreed to sign off on Mr. Sawyer's estimate. The truth was that although she believed she was 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 5,500 units of product and it started 94,500 units during the period. It transferred out 90,000 units during the period. Total transferred-in and production cost for the period was $902,400. This amount included the cost in beginning inventory plus additional costs incurred during the period. The target (standard) cost per unit is $9.45. Required :1. Determine the equivalent cost per unit, assuming that the ending inventory is considered to be 40 percent complete. b. Determine the equivalent cost per unit, assuming that the ending inventory is considered to be 60 percent complete. c. Comment on Mr. Sawyer's motives for establishing the percentage of completion at 60 percent rather than 40 percent. [1. Assuming that Ms. Alverez is a certied management accountant, would informing the chief accountant of her dispute with Mr. Sawyer violate the condentiality standards of ethical professional practice in Exhibit 1.1\"! of Chapter I? 9. Did Ms. Alverez violate any of the standards of ethical professional practice in Exhibit 1.17 of Chapter 1? If so, which ones? f. Discuss the components of the fraud triangle that affected Ms. Alverez's behavior. Child care Training Coursesnrsejiles 24027 J'Jpg . Je ssica Lane D'Ann Resume .L. mce(3) Shot Screen Shot LOB PM 2013A'll...9.40 PM

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Regulation In Japan Evolution And Development From 2001 To 2015

Authors: Masatsugu Sanada, Yoshihiro Tokuga

1st Edition

0367221071, 9780367221072

More Books

Students also viewed these Accounting questions

Question

What is the purpose of an interface?

Answered: 1 week ago

Question

What is the role of cognition and thought in learning?

Answered: 1 week ago