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Arturiano [62]
1 year ago
14

Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which h

as several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, Iowa, while Gary manages the plant in EI Segundo, California. Production managers are paid a salary and get an additional bonus equal to 5% 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: How's it going, Mary?
Mary: Fine, Gary. How's it going with you?
Gary: Great! I just got the preliminary profit figures for the division for last year and we are within \$ 200,000 of making the year's target profits. All we have to do is pull a few strings, and we'll be over the top!
Mary: What do you mean?
Gary: Well, one thing that would be easy to change is your estimate of the percentage completion of your ending work in process inventories. Mary: 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. 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, 210,000 units were transferred in from the prior processing department and 200,000 units were completed and sold. Costs transferred in from the prior department totaled 39,375,000. No materials are added in the final processing department. A total of 20,807,500 of conversion cost was incurred in the final processing department during the year.
Required:
(c) What percentage completion would result in increasing reported net operating income by 200,000 over the net operating income that would be reported if the 30% figure were used?
Business
1 answer:
Sav [38]1 year ago
7 0

The Consumer Electronics Division of General Electronics Company, which has a number of dozen factories all over the world, is run by production managers Gary Stevens and Mary James. Gary is in charge of the facility in EI Segundo, California, while Mary is in charge of the one in Des Moines, Iowa. If the entire division reaches or surpasses its yearly profit objective, production managers will get a bonus equivalent to 5% of their basic pay. The bonus is decided in March, following the completion and distribution to investors of the company's annual report.

Percentage Completion

The percentage of completion method involves the ongoing recognition of revenue and income related to longer-term projects. By doing so, the seller can recognize some gain or loss related to a project in every accounting period in which the project continues to be active.

PER UNIT COST      187.50

FINAL PROCESS COMPLETION PERCENTAGE         40%

FINAL PROCESS COMPLETION 204,000

COGS  289

TOTAL COGS  57,899,510

NET PROFIT   100,490

To know more about Percentage Completion visit:

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When Bonita put together a research report for her company, what would she have included in the references section?
Lerok [7]

In a typical research report, the items that are included in the references section are:

  • author
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<h3>What is the purpose of references in research report?</h3>

Generally, a reference is the way of giving credit to the writers from whom you have borrowed words and ideas, so, by citing the work of a particular scholar, you acknowledge and respect the intellectual property rights of that researcher.

As an academic, we  can draw on any of the millions of ideas, insights and arguments published by other writers, many of whom have spent years researching and writing. All we need to do is acknowledge their contribution to your assignment.

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3 0
1 year ago
Tuity fruity beverage​ company's operating activities for the year are listed below. purchases ​$140 comma 500 operating expense
Greeley [361]

Answer:

$135,100

Explanation:

Given :

Cost of purchasing: $140,500

Operating expenses :$80,600

beginning inventory:$12,900

Ending inventory:$18,300

sales revenue :$300,700

Gross profit of the year can be determined by

Cost of purchasing + beginning inventory - Ending inventory

=140,500 + 12,900 -18,300

=$153,400-$18,300

=$135,100

8 0
3 years ago
while shopping grey spend 90% of the money she had if she has $4,500 on shopping what was amount of money spent​
goldenfox [79]

Answer:

$4,050

Explanation:

Grey has $4,500 for shopping.

She spent 90%  while on shopping.

The amount spent = 90/100 x $4500

=0.9 x $4,500

=$4,050

7 0
3 years ago
What is the first step of creating a federal budget A. Congress votes on requirements for a budget plan. B. Executive agencies s
Yakvenalex [24]

Answer:

C. State governments submit their budget proposals.

Explanation:

The Federal budget is a budget for the entire country.  It is an estimate of the expected government revenue and expenditure for a fiscal year.

The first step in the federal budget preparation involves submitting proposals by the government department and agencies. These are the federal agencies such as security agencies. They submit their expenditure proposal to the Whitehouse. All agencies' proposals make up part of the president's budget request.

7 0
3 years ago
At Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shi
matrenka [14]

Answer:

Theory X.

Explanation:

In this scenario, Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has "worked hard enough" to even deserve a break. Earlier today, Eon remarked, "I've never met one that likes this job! They're only biding their time and here for the money." Eon's managerial style would be classified as Theory X.

Douglas McGregor developed the theory x and y in the 1950s while working at the MIT Sloan school of management.

Theory X suggests that employees working in a particular organization dislike work, possess minimal ambition, and are generally not willing to take up responsibility.

Hence, with the Theory X it is very important and essential that these employees be supervised and rewarded externally with prizes and punishment should be used when they err.

4 0
3 years ago
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