Rene Alvere knew she was in over her head onaner she took the Even so, the opportunity for promotion comes along rarely and she believed that she would grow into it. Mr. Alverex is the cost accounting specialist assigned to the finishing department of Standard Tool Company, Bill Sawyer, the manager of the finishing department, know exactly what he is doing. In each of the three years be 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 cast 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 scal the deal for Mr. Sawyer. It was little wonder that is Alvarez 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 After a brief altercation, Ms. Ahora agreed to sign off on Me Sawyer's estimate. The truth was that although she believed she was right, she did not know how to sopport her position. Besides, Mt. Sawyer was about to be named plant manager, and she felt it unwise to challenge nach 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 4. 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 OBAM o www 5 6 7 8 0 W E R T U A s D F G H J K N CVBNM Alt Alt After a brie altercation, Ms. Alvergreed to sign of O. Sawyer's estate. 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 8000,400. 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 a. 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 d. Assuming that Ms. Alverez is a certified management accountant, would informing the chief accountant of her dispute with Mr. Sawyer violate the confidentiality standards of ethical professional practice in Exhibit 1.17 of @ Chapter 1? c. Did Ms. Alvorez 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. Alverce's behavior. type to search O PULSER Dewe OD 96 5 2 3 4 9 0 W E R T U 0 P s D G H Alt Alt
