Unformatted text preview: completion, the higher the equivalent units, which lowers the unit costs. 3. Increasing the percentage of completion may increase net operating income if the cost of goods sold is reduced. The cost of goods sold would have to be cut by $200,000 so that the net operating income would increase by $200,000. 4. Mary is being peer pressured and I think she shouldn’t do it. This is very untruthful as this is immoral probably by almost any standard. The “lying” excuse may or may not work but I don’t think it is just worth it....
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- Fall '19
- Generally Accepted Accounting Principles, Goods Sold, Conversion of units