Managerial Accounting & Legal Aspects Of Business Percentage Of Completion

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Refer to the scenario located in the Analyze, Think,Communicate section 12-5 of Ch. 12, Job-Order, Process, and Hybrid CostingSystems of Fundamental Managerial Accounting Concepts. Thisscenario involves an altercation between Rene Alverez and Bill Sawyer andrequires you to weigh in with calculations and comments on the matter.

 

Read the scenario in the textbook (Scenario located in the attached) and complete the activity below.

Managerial Accounting & Legal Aspects Of Business Percentage Of Completion

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Compute the equivalent cost per unit, assuming theending inventory is considered to be 40 percent complete.

Compute the equivalent cost per unit, assuming theending inventory is considered to be 60 percent complete.

Write a 350-word summary of your calculations andfindings. Comment on Mr. Sawyers motives for establishing the percentage  ofcompletion at 60 percent rather than 40 percent.

 

Submit calculations and summary.


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