Some of my answers are not correct because of calculation issue, please help thi

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Some of my answers are not correct because of calculation issue, please help this question in detailed

e You Have Recently Acce × e Chegg Study | Guided s × y M Cases x ) Ocean Of Soul 2 (638158 × (79) PVRIS-Empty- ezto.mheducation.com/hm.tpx 15.00 points You did not receive full credit for this question in a previous attempt Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, lowa, while Gary manages the plant in El Segundo, California. Production managers are paid a salary and get an additional bonus equal to 10% of their base salary if the entire division meets or exceeds its target profits for the year. The bonus is determined in March after the company's annual report has been prepared and issued to stockholders Shortly after the beginning of the new year, Mary received a phone call from Gary that went like this Gary: Mary: How's it going, Mary? Fine, Gary. How's it going with you? Gary: Great! Ijust got the preliminary profit figures for the division for last year and we are within $70,200 of making the year's target profits. All we have to do is pull a few strings, and well be over the top! What do you mean? Well, one thing that would be easy to change is your estimate of the percentage completion of your ending work in process inventories I don't know if I can do that, Gary. Those percentage completion figures are supplied by Tom Winthrop, my lead supervisor, who I have always trusted to provide us with good estimates Mary: Gary: Mary: Besides, I have already sent the percentage completion figures to corporate headquarters Gary: You can always tell them there was a mistake. Think about it, Mary. All of us managers are doing as much as we can to pull this bonus out of the hat. You may not want the bonus check, but the rest of us sure could use it The final processing department in Mary's production facility began the year with no work in process inventories. During the year, 290,000 units were transferred in from the prior processing department and 270,000 units were completed and sold. Costs transferred in from the prior department totaled $60,030,000. No materials are added in the final processing department. A total of $18,012,500 of conversion cost was incurred in the final processing department during the year Required 1. Tom Winthrop estimated that the units in ending inventory in the final processing department were 25% complete with respect to the conversion costs of the final processing department. If this estimate of the percentage completion is used, what would be the Cost of Goods Sold for the year? (Round your cost per unit to 2 decimal places.) of sold $73,575,000 2. Does Gary Stevens want the estimated percentage completion to be increased or decreased? Increased Decreased 3. What percentage completion would result in increasing reported net operating income by $70,200 over the net operating income that would be reported if the 25% figure were used? (Do not round your cost per unit calculations. Round your intermediate calculations to the nearest dollar amount and final answer to the nearest whole percent.) erce e completion 41% TR@ Im. ) all 20:17 26.12.2017

Explanation / Answer

Units Beginning work in process 0 Transferred in from prior processing 290000 Completed and sold 270000 Ending work in process 20000 Equivalent Unit of conversion Percentage completion Completed and sold 270000 270000 100% Ending work in process 20000 5000 25% Total 290000 275000 A Convesrion costs incurred $18,012,500 B=A/275000 Convesrion costs incurred per equivalent unit $65.50 C=B*270000 Convesrion costs for units completed and sold $17,685,000 D Costs transferred in $60,030,000 E=(D/290)*270 Transferred in costs for completed units $         55,890,000 F=C+E Cost of goods sold $73,575,000 1 Cost of goods sold $133,605,000 Bonus will be given if targeted profit is met Profit will increase if ending work in process increases This is possible by increasing percentage of conversion 2 Gary stevens wants percentage of profit INCREASED Conversion cost incurred $18,012,500 Current conversion cost in ending work in process $327,500 Increase in work in process required $70,200 required conversion cost in ending WIP $397,700 (327500+70200) Conversion cost of completed units $17,614,800 Conversion cost per equivalent unit $65.24 (17614800/270000) Equivalent unit in ending WIP 6095.953403 (397700/65.24) Equivalent unit in ending WIP(rounded to whole no.) 6096 Percentage completion 30.48% (6096/20000) Estimated percentage completion required 30.5% (rounded) 3 Percentage completion 30.5%

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