Business, 23.06.2020 22:01 jenaycasmall

Rick Pines and Joe Lopez are the plant managers for High Mountain Lumber's particle board division. High Mountain Lumber has adopted a just-in-time management philosophy. Each plant combines wood chips with chemical adhesives to produce particle board to order, and all product is sold as soon as it is completed. LauraGreen is High Mountain Lumber's regional controller. All of High Mountain Lumber's plants and divisions send Green their productionand cost information. While revieweing the numbers of the twoparticle board plants, she is surprised to find that both plantsestimate their ending Work-in-Process Inventories at 75% complete, which is higher than usual. Green calls Lopez, whom she has knownfor some time. He admits that to ensure their division would meetits profit goal and that both he and Pines would make their bonus(which is based on division profit), they agreed to inflate thepercentage completion. Lopez explains, "Determining the percentcomplete always requires judgment. Whatever the percent complete, we'll finish the Work-in-process Inventory first thing nextyear. 1. How would inflating the percentage completion of endingWork-in-Process Inventory help Pines and Lopez get their bonus?
2. The particular board division is the largest of High Mountain Lumber's divisions. If Green does not correct the percentagecompletion of this years ending Work-in-Process Inventory, howwill the misstatement affect High Mountain Lumbers financialstatements?
3. Evaluate Lopezs justification, including the effect, if any, on next years financial statements.
4. Address the following: A. What is the ethical issue? B. What arethe options? C. What are the potential consequences? D. What should Greendo?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 12:50

Kendrick is leaving his current position at a company, and charlize is taking over. kendrick set up his powerpoint for easy access for himself. charlize needs to work in the program that is easy for her to use. charlize should reset advanced options

Answers: 3

Answer

Business, 23.06.2019 01:20

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east westsales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 )the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss) of: multiple choice$91,900$(64,100)$(142,000)$(50,100)

Answers: 3

Answer

Business, 23.06.2019 07:50

Suppose for a consumer the marginal utility (mu) of bread is 20 utils and the mu of milk is 10 utils; the price of bread is $3 and the price of milk is $1. given this, a. more utility per dollar is gained from consuming bread than milk. b. more utility per dollar is gained from consuming milk than bread. c. the same amount of utility per dollar is gained from consuming milk as bread. d. the consumer is in consumer equilibrium.

Answers: 1

Answer

Business, 23.06.2019 08:10

Suppose that in the year 2020 the price level in the fictional country of demet is 100, and the governement is considering

Answers: 2

Answer

You know the right answer?

Rick Pines and Joe Lopez are the plant managers for High Mountain Lumber's particle board division....

Questions