Managerial Accounting: Tools for Business Decision Making
Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Chapter 3, Problem 3.5BYP

Ethics Case

R. B. Dillman Company manufactures a high-tech component used in Bluetooth speakers that passes through two production processing departments. Molding and Assembly. Department managers are partially compensated on the basis of units of products completed and transferred out relative to units of product put into production. This was intended as encouragement to be efficient and to minimize waste.

Chapter 3, Problem 3.5BYP, Ethics Case R. B. Dillman Company manufactures a high-tech component used in Bluetooth speakers that

Jan Wooten is the department head in the Molding Department, and Tony Ferneti is her quality control inspector. During the month of June. Jan had three new employees who were not yet techni­cally skilled. As a result, many of the units produced in June had minor molding defects. In order to maintain the departments normal high rate of completion. Jan told Tony to pass through inspection and on to the Assembly Department all units that had defects nondetectable to the human eye. “Com­pany and industry tolerances on this product are too high anyway.” says Jan. “Less than 2% of the units we produce arc subjected in the market to the stress tolerance we've designed into them. The odds of those 2% being any of this month's units are even less. Anyway, we're saving the company money.”

Instructions

(a) Who are the potential stakeholders involved in this situation?

(b) What alternatives does Tony have in this situation? What might the company do to prevent this situation from occurring?

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Chapter 3 Solutions

Managerial Accounting: Tools for Business Decision Making

Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Coats Company had zero units of beginning work in...Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Hindi Co. started 3,000 units during the period....Ch. 3 - Clauss Company transfers out 14,000 units and has...Ch. 3 - Prob. 16QCh. 3 - What purposes are served by a production cost...Ch. 3 - As Trent Company, there are 500 units of ending...Ch. 3 - What is the difference between operations costing...Ch. 3 - How does a company decide whether to use a job...Ch. 3 - Soria Co. started and completed 2,000 units for...Ch. 3 - Reyes Company transfers out 12,000 units and has...Ch. 3 - Journalize entries for accumulating costs. (LO 2)....Ch. 3 - Data for Warner Company are given in BE3-1....Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute unit costs of production.. (LO 4), AP In...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 4), AP Production costs...Ch. 3 - Prepare cost reconciliation schedule. (LO 4), AP...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 5), AP Production costs...Ch. 3 - Indicate whether each of the following statements...Ch. 3 - Kopa Company manufactures CH-21 through two...Ch. 3 - The Assembly Department for Right pens has the...Ch. 3 - In March, Kelly Company had the following unit...Ch. 3 - Robert Wilkins has prepared the following list of...Ch. 3 - Journalize transactions. (LO 2), AP Harrelson...Ch. 3 - The ledger of American Company has the following...Ch. 3 - Journalize transaction for two processes. (LO 2),...Ch. 3 - In Shady Company, materials are entered at the...Ch. 3 - The Cutting Department of Cassel Company has the...Ch. 3 - The Sanding Department of Quik Furniture Company...Ch. 3 - The Blending Department of Luongo Company has the...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - The Polishing Department of Major Company has the...Ch. 3 - Prob. 3.12ECh. 3 - The Welding Department of Healthy Company has the...Ch. 3 - Remington Inc. is contemplating the use of process...Ch. 3 - Santana Mortgage Company uses a process cost...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Answer questions on costs and production. (LO 5),...Ch. 3 - The Welding Department of Majestic Company has the...Ch. 3 - Fire Out Company manufactures its product,...Ch. 3 - Complete four steps necessary to prepare a...Ch. 3 - Thakin Industries Inc. manufactures dorm furniture...Ch. 3 - Rivera Company has several processing departments....Ch. 3 - Polk Company manufactures basketballs. Materials...Ch. 3 - Hamilton Processing Company uses a weighted...Ch. 3 - Determine equivalent units and unit costs and...Ch. 3 - CURRENT DESIGNS CDJ Building a kayak using the...Ch. 3 - Decision-Making Across the Organization Florida...Ch. 3 - Harris Furniture Company manufactures living room...Ch. 3 - CRITICAL THINKING Communication Activity Diane...Ch. 3 - Ethics Case R. B. Dillman Company manufactures a...Ch. 3 - In a recent year, an oil refinery Texas City,...
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