Apply Percentage of Completion

Apply Percentage of Completion Renee Alvarez is the current accounting specialist at Standard Tool Company where she is assigned to the finishing department (Edmonds et al., 2020). She is currently at a standstill so to speak with Bill Sawyer who is currently the manager of the finishing department where for the last three years has done a fantastic job at reducing the cost per unit in Work in Process Inventory reports. Bill is currently being considered for plant manager as the current plant manager is transitioning from his current role into the Vice President of manufacturing (Edmonds et al., 2020). Where this problem originates from is the most recent product and targeted standard cost per unit. The job has a starting inventory of 5500 units and has started an additional 94,500 units during the job period. Bills department has transferred out 90,000 units and the cost for both transferred in and production of the period is $902,400. Bill reports that the inventory for this. Is 60% complete whereas Renee believes that inventory is at 40% complete. With Bills historical accuracy Renee feels it out of place to question Bill any further and so she signs off on Bill's numbers which is in fact good because Bill's numbers at 60% come in at $9.40 per unit. Furthermore, after calculating each equation the cost per unit for Renee's 40% comes in at $9.60 per unit which is higher than the targeted standard cost per unit and Bills numbers come in lower than the targeted standard cost per unit (Edmonds et al., 2020). The calculations for both numbers are as follows. Renee's 40% 1.Beginning inventory- 5500 units. 2.Production started- 94,500 units. 3.Transferred out- 90,000 units.