1 Describe Wilson's ethical dilemma.
If Wilson follows the division's president's request, he will knowingly be overstating the value
of the firm's inventory. While this might solve the problem temporarily, it is not an ethical or
logical solution to the
Operating Income Statement, June 2014
Cost of Goods Sold
Variable Manufacturing Costs
Fixed Manufacturing Costs
Variable Marketing Costs
Fixed Marketing & Administration Costs
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Managing the company's long-term investments
Presenting financial statements to the board of directors
Strategic review of different lines of businesses
Budgeting funds for a plant upgrade
Managing accounts receivable
Homework Week 1 Solutions
Professional ethics and reporting division performance.
Wilsons ethical responsibilities are well summarized in the IMAs Standards of Ethical Conduct for
Management Accountants (Exhibit 1-7 of text). Areas of ethical resp
Week 4 Homework #7
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E9-20 Variable versus absorption costing.
Rev 345,400 x $22 =
Beg Inv $85,000 x $5.10 =
Var Mfg Cost $5.10 x 294,900 =
Goods Avail =
End FG Inv 34,500 x $5.10 =
Var Op Exp = 345,400 x $
Week 2 Homework #2
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E4-19. Budgeted manufacturing overhead rate, allocated manufacturing overhead.
Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a
budgeted rate per machine-hour. The following dat
Week 2 Homework #3
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E17-24. Weighted-average method, assigning costs.
Step 1-Physical Units
Step 2-Calculate fully equivalent completed units
Compute the actual and budgeted
1 manufacturing overhead rates for 2014.
Direct material costs
Direct manufacturing overhead costs
Manufacturing overhead costs
Budget for 2014
Actual manufucaturing overhead rate