Assignment Content
Refer to the scenario located in the “Analyze, Think,
Communicate” section 12-5 of Ch. 12, “Job-Order, Process, and Hybrid Costing
Systems” of Fundamental Managerial Accounting Concepts. This
scenario involves an altercation between Rene Alverez and Bill Sawyer and
requires 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.
Compute the equivalent cost per unit, assuming the
ending inventory is considered to be 40 percent complete.
Compute the equivalent cost per unit, assuming the
ending inventory is considered to be 60 percent complete.
Write a 350-word summary of your calculations and
findings. Comment on Mr. Sawyer’s motives for establishing the percentage of
completion at 60 percent rather than 40 percent.
Submit calculations and summary.