lul lie& goods, and how much cost dhoed I have been have been assigned to ending work in process inventory in the Finishing Department. 2. Explain to the president why the unit cost on the new assistant controller's report is CASE 4-20 Ethics and the Manager. Understanding the Impact of Percentage Completion on Profit-Weighted-Average Method LO4-2, LO4-3, LO4-4 Gary Stevens and Mary James are production managers in the Consumer General Electronics Company, which has several dozen plants ronis Division of Elect 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 to 5% 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 200,000 of making the year's target profits. All we have to do is pull a few strings, and we'll be over the top! Mary: What do you mean? Gary: Well, one thing that would be easy to change is your estimate of the your ending work in process inventories