Chap004 (dragged) 49 - o n t o r e f u s e h i s f r i e n...

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McGraw-Hill/Irwin ¤ 2005 The McGraw-Hill Companies, Inc. 4 - 50 Solutions Manual CASE 4-43 (CONTINUED) Check: Cost of goods completed and transferred out . .. $105,300 Cost of October 31 work-in-process inventory . . 3,520 T o t a l c o s t s accounted for. .................................... $108,820 5. If the units were 50 percent complete as of October 31, there would be 8,300 equivalent units with respect to conversion. (To see this, just change the 160 in the right-hand column of the equivalent-units part of the table in the solution to requirement (4) to 200. This changes the last number in the right-hand column from 8,260 to 8,300.) N o w t h e u n i t c o s t o f c o n v e r s i o n drops from $7.00, as currently computed, to $6.97 (rounded, $57,820 ÷ 8,300). Thus, the unit cost drops from $13.00 to $12.97 (rounded). A s c o n t r o l l e r , J e f f D a l e y h a s a n e t h i c
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Unformatted text preview: o n t o r e f u s e h i s f r i e n d ' s request to alter the estimate of the percentage of completion. What Daley can do is to help Murray think of some legitimate ways to bring about real cost reductions. Several ethical standards for management accountants (listed in Chapter 1) apply in this situation. Among the relevant standards are the following: C o m p e t e n c e : x Prepare complete and clear reports and recommendations after appropriate analyses of relevant and reliable information. O b j e c t i v i t y : x Communicate information fairly and objectively. x Disclose fully all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, comments, and recommendations presented....
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