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I need help with this question, please. 314 PartIIl Cost Management Systems (LO 8-8) 8-44. Operation Costing: Ethical Issues included: Basic, Photo, and UrLife. Production
I need help with this question, please.
314 PartIIl Cost Management Systems (LO 8-8) 8-44. Operation Costing: Ethical Issues included: Basic, Photo, and UrLife. Production takes place n Special Packaging. The Basic and Photo models are comp model goes from Assembly to Special Packaging and is conpe shown in the following table. Conversion costs are allocate produced. There are no work-in-process inventories. ctures three cell phone models, which differ only in the com po two departments, Assembly based on the number of i Basic Photo UrLife Total (40,000 units) (30,000 units) (10,000 units $2,240,000 $480,000 $%1,200,000 $560,000 $2,100,000 Materials . . Conversion costs Total conversion costs. .. $2,700,000 Required a. What is the cost per unit transferred to finished goods inventory for each of the three phones in July? b. The UrLife model is sold only to the government on a cost-plus basis. The marketing vice president suggests that conversion costs in Assembly could be allocated on the basis of material costs so he can offer a lower price for the Basic model (1) What cost would be reported for the three models if the marketing vice president' suggestion is adopted? Would this be ethical? (2) (LO 8-8) 8-45. Operation CostingStep by Step Solution
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