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Ch - • Ethics Case BYP 1-7(a Who are the stakeholders in...

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Ch. 1 Textbook Exercises Exercise E1-7 & BYP 1-7 University of Phoenix ACC/349 Instructor: Leona Seto-Mook By Scott Ward
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Exercise E1-7 MADLOCK MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2005 Work in process (1/1) $210,000 Direct materials Raw materials inventory (1/1) ?(1) Add: Raw materials purchases $158,000 Total raw materials available for use ?(2) Less: Raw materials inventory (12/31) 7,500 Direct materials used $190,000 Direct labor ?(3) Manufacturing overhead Indirect labor $ 18,000 Factory depreciation 36,000 Factory utilities 68,000 Total overhead 122,000 Total manufacturing costs ?(4) Total cost of work in process ?(5) Less: Work in process (12/31) 81,000 Cost of goods manufactured $530,000 Answers (1) = $ 39,500 (2) = $ 197,500 (3) = $ 89,000 (4) = $ 401,000 (5) = $ 611,000
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Unformatted text preview: • Ethics Case BYP 1-7 (a) Who are the stakeholders in this situation? The stakeholders are Wayne, the vice president of finance, the president of Robbin Industries and any who uses the Robbin Industries’ financial statements. (b) What are the ethical issues involved in this situation? The only ethical issue has to do with the following of GAAP for dealing with this problem with the financial statement. There is a chance that this could lead to misleading information and if used for personal or company gain, will become unethical. (c) What would you do if you were Wayne Terrago? Wayne should inform the management of the correct GAAP and go over what is acceptable for the financial statements and how to account for advertising costs and revenue....
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Ch - • Ethics Case BYP 1-7(a Who are the stakeholders in...

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