Week 2 Threaded discussion 1:
Welcome to our Week 2 Discussions! Let’s begin by discussing when job order costing systems would be more appropriate than a process costing system.
Post 2 question: Is there a difference in the computation of product cost for job order and process costing?
Week 2 post 2: Go to page 166 and read Case 4-19, Ethics and the Manager: Understanding the Impact of Percentage Completion on Profit. Let’s address the questions, provide reasons for our answers, share relevant personal experiences, and provide value-added comments, articles, and related websites. Let’s have a lot of interaction.
1. Jean Jackson 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?
2. Does Thad Kostowski want the estimated percentage completion to be increased or decreased? Explain why.
3. What percentage completion figure would result in increasing the reported net operating income by $62,500 over the net operating income that would be reported if the 25% figure were used?
4. Do you think Carol Lee should go along with the request to alter estimates of the percentage completion? Why or why not?
Week 2 posting 2: