Homework: Percentage of Completion
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 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 words 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.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.