1. Walnut's management-accounting system. How should I give a comments?
2. The feasibility of budgeting for Walnut. What the benefits about Walnut?
3. Control of rejects. How should I give my suggestion to owner?

EXHIBIT 6A-4 Summary of Bids Submitted and Won Standard Customized 2013 2013 2012 2012 ($000) ($000) # ($000) ($000) Submitted $3,950 $4,410 $1,135 $1,200 350 + 210 590 715 Won 60% % Won 8% 52% department with the cost of the reprocessing work. If the responsibility could not be identified, the reprocessing cost was charged to the corporate reject-reprocess- ing account. In processing large-volume contracts, rejects were normally not a major problem and production scheduling provided for 5 percent overproduction to replace rejects. In processing the high-priced, low-volume customized contracts. it was not economically feasible to overproduce, so supervisors were urged to emphasize quality work; nevertheless, the reject rate at the final inspection by cus- tomers was over 15 percent. Rejects found after installation usually required replacement. Since Wayne had made a point of severely reprimanding each super- visor for any rejects on his or her monthly operating statements, departmental reject charges had significantly declined for each department except the installing department. Much bitterness resulted from attempting to identify responsibility for rejects. Meanwhile, the total reject expense increased slightly. Wayne was not overly concerned about the reject problem since the cost was incorporated into Walnut's bids. The corporate reject cost percentage of the total processing cost was determined and added to the bids as part of the corporate over- head charge. However, he wondered whether the answer to the reject problem might not be to subcontract installation. Wayne would have liked to spend more time on the reject problem, but felt that this time was better spent on the road soliciting orders. Upon reviewing the 2013 financial statements with Wayne, Walnut's banker was also concerned that profits had not improved and, therefore, requested that a budget be prepared for 2014. Wayne argued that budgets simply were not feasible in his business because production and sales were a function of bids won and could not be predicted accurately. On his banker's advice, Wayne engaged a management-accounting consultant to study the operations and problems of Walnut, and to submit a report on his findings. Wayne asked the consultant to include an analysis of the following in his report: 1. Walnut's management-accounting system. 2. The feasibility of budgeting for Walnut. 3. Control of rejects. 4. The bidding process. REQUIRED As the management-accounting consultant engaged by Wayne Andrews, prepare the requested report on Walnut's operations and problems. C6-4 Collaborative Learning Assignment: Internet Research on Job Costing (Review of Chapter 6) Form groups of three to f