Question
Process Costing Your answers must be specific and use accounting analysis, concepts, and/or terminology. 1. How would inflating the estimate of the percentage completion of
Process Costing
Your answers must bespecificand useaccountinganalysis, concepts, and/or terminology.
1. How would inflating theestimate of the percentage completionof ending Work-in Process (WIP) Inventory help a manager (who works in a lumber company) get a bonus that is based on division profit (HINT: Think about unit costs, Finished Inventory, and Cost of Goods Sold)?
2. If the percentage of completion of a year's ending WIP Inventory is not corrected, how will the misstatement affect the financial statements?
3. Is there any effect on next year's financial statements?
4. Is this an ethical issue in your view?Or is it irrelevant because no one is really hurt?
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Cost Accounting
Authors: William K. Carter
14th edition
759338094, 978-0759338098
