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y Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations

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y Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, lowa, while Gary Ga manages the plant in El Segundo, California. Production managers are paid a salary and 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 get an additional bonus equal to 10% of their 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 protit figures for the division tor last yeas and we are within $48,150 of making the year's target profits. A11 ve have to do is pall a tew strings, and we'l1 be over the top: Mary: What do you mean? Gary: Wel1, one thing that would be easy tolchange s your eatinate of the percentage completion of your ending wozk in process inventories ry: I don't know it I can do that, Gary. Those percentage completzon rigures are supplied by Tom winthrop, my lead supervisor, who I have aiways crusted to provide ua with estimates. Besides, I have already sent the percentage completion figurea to corporate headquarters Gary: You can always tell them there was a mistake. Think about it, Mary Al1 or us managers are doing as much as ve can to pull this bonus out of the hat. You may not want the bonus check, but the rest ot us sure could use it. The final processing department in Mary's production facility began the year with no work in process inventory. During the year 7,000 units were transferred in from the prior processing department and 321,000 units were completeda in from the prior department totaled $84,410.000. No materials are added in the final processing department. A total of $ conversion cost was incurred in the final processing department during the year

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