Preview

The Paper

Good Essays
Open Document
Open Document
320 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Paper
1. Jean Jackson estimated that the units in ending inventory in the final processing department were 25% complete with respect to the conversion costs of the final processing department. If this estimate of the percentage completion is used, what would be the cost of goods sold for the year?

Since 270,000 units were transferred in the processing department and 250,000 were completed and sold, this leaves 20,000 units left in the ending inventory. Of the 20,000 units left in inventory, 25% of the conversion cost required to complete the units had already been incurred. The partially completed units need to be computed into equivalent units, which are the number of completed units that could have been produced from the work that was put into all the partially completed units (Garrison, Noreen & Brewer, 2012).

Equivalent units = 20,000 x 25%, so the equivalent units is 5,000
Equivalent units of production = 250,000 + 5000 = 255,000

Cost per equivalent unit = 49,221,000 + 16,320,000 = 65,541,000/ 255,000= 257.02 per unit

257.02 x 250,000= 64,255,882

2. Does Thad Kostowski want the estimated percentage completion to be increased or decreased? Explain why.

Thad Kostowski wanted the estimated percentage of completion to be increased in order to make it seem as if the cost of goods sold is lower.

3. What percentage completion figure would result in increasing the reported net operating income by $62,500 over the net operating income that would be reported if 25% figure were used?

4. Do you think Carol Lee should go along with the request to alter estimated of the percentage completion? Why or why not?

Carol Lee should not go along with the request because it would be unethical. Thad Kostowski is already being unethical by asking her to alter information and if she goes along with his request she is bringing her lead supervisor, Jean Jackson, into the unethical practices as well. In other words, if she says yes

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The Paper

    • 336 Words
    • 2 Pages

    1) Given Pitney Bowes grown and globalization strategies. The forces against maintaining an organizational culture that supports diversity as a business imperative would be the economy and the shift from a manufacturing to a service economy. The forces that would be for their strategies would be the great workplace benefits and the open communication that they have with their CEO, there are certain employees that get recognized for demonstrating excellence in diversity. Also they constantly evaluate diversity management in their company and recruit from a variety of sources that would help them maintain a diverse workforce.…

    • 336 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    ACCT 346 Final Exam

    • 623 Words
    • 3 Pages

    6. (TCO 3) The Freedom Corporation’s painting department had a beginning inventory of 580 units, which had direct material costs of $22,715. During June, 9,290 units were started and costs of $1,268,085 were incurred for direct material. Ending inventory consists of 1,000 units, which are 35% complete with respect to direct material. What is the cost per equivalent unit for direct material?…

    • 623 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    3. (TCO F) Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be: (Points : 5)…

    • 798 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2010 and $1,200,000 in 2011. a. Calculate the inventory turnover for each year. Comment on your findings b. What would have been the amount of inventories in 2011 if the 2010 turnover ratio had been maintained?…

    • 530 Words
    • 3 Pages
    Good Essays
  • Good Essays

    the paper

    • 446 Words
    • 2 Pages

    1. How are the number of electoral votes decided for each state? How many electoral votes are in your home state? Which Presidential candidate (Obama or Romney) won your state’s electoral votes in the 2012 election?…

    • 446 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Luke

    • 351 Words
    • 2 Pages

    After a brief silence, Roberts told a stunned Walker that he and the other audit partners agreed with Vaughn. He informed Walker that she would be given 60 days to find another job. Roberts also told Walker that he and the other partners would not disclose that she had been ”counseled out” of the firm if they were contacted by employers interested in hiring her.…

    • 351 Words
    • 2 Pages
    Good Essays
  • Good Essays

    HRM593 You decide WK 1

    • 913 Words
    • 4 Pages

    1. Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision?…

    • 913 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The Paper

    • 602 Words
    • 3 Pages

    This week, from Sunday through Friday, the local theater sold adult and student tickets to their current play. The person in charge of selling the tickets kept a record of the number of adult and student tickets sold on each day. However, the person forgot which day the tickets were actually sold. The number of adult tickets sold (three, twenty-five, nineteen, sixteen, fourteen, and thirty tickets) and the number of student tickets sold (twelve, thirty-four, sixteen, twenty-four, forty, and fourteen) are known and the following information is also known:…

    • 602 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Paper

    • 377 Words
    • 2 Pages

    4) What is the genotypic and phenotypic ratio from the F2 of a monohybrid cross?…

    • 377 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    paper

    • 3009 Words
    • 13 Pages

    The criminal justice system is a group of institutions that work together to protect a society, prevent and control crime, and maintain justice; enforcing the laws regulated by society. As the years have gone by and society has evolved; so have the criminal justice system and its methods to accomplish its role in society. This short analysis will evaluate the main facts that have been affecting the criminal justice system for decades and have influenced the evolution the justice system is enduring in a changing society (Muraski, 2009). Amongst the changes in the system, we will discuss the effect the changes have had on the citizens and how their perceptions have evolved as well.…

    • 3009 Words
    • 13 Pages
    Satisfactory Essays
  • Good Essays

    paper

    • 651 Words
    • 2 Pages

    There were two presidents in office during this era. William Howard Taft, the 27th president, was in office from 1909 to 1913.During Taft's term everyone compared him to Roosevelt, the previous president, and would always criticize his ways. People always talked smack about how he supported big business, although no one ever mentioned how he was the first president to protect federal lands on oil had been found. Also how he protected coal infested lands. Some people may say that he was a bad president because he kept the government from enforcing the 15th Amendment, which gives black people the right to vote.…

    • 651 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Exercise 3-13. Costing Units Completed and Ending Work in Process [LO 2,3,4] At the start of November, Penco Refinery had Work in Process inventory consisting of 4,000 units that were 90 percent complete with respect to materials and 50 percent complete with respect to conversion costs. The cost of the units was $38,000 ($25,000 of material cost and $13,000 of labor and overhead). During November, the company started 44,000 units and incurred $421,970 of material cost and $394,880 of labor and overhead. The company completed 45,000 units during the month, and 3,000 units were in process at the end of November. The units in ending Work in Process were 85 percent complete with respect to materials and 45 percent complete with respect to conversion costs.…

    • 533 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    1. Jean Jackson estimated that the units in ending inventory in the final processing department were 25% complete with respect to the conversion costs of the final processing department. If this estimate of the percentage completion is used, what would be the Cost of Goods Sold for the year?…

    • 486 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Actg351 Hw1

    • 995 Words
    • 4 Pages

    a. Assume that Curtiss appropriately accounts for this contract under the percentage of completion method. Compute the amount of gross profit or loss to be recognized each of the three years. Record the necessary journal entries for each year (credit Various Accounts for construction costs incurred).…

    • 995 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    The paper

    • 1116 Words
    • 5 Pages

    7. Using what you know about electrons and energy levels, do you think that Sulfur will…

    • 1116 Words
    • 5 Pages
    Powerful Essays