The Filling Department of Savannah Lotion Company had 3-000 ounces in.docx

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The Filling Department of Savannah Lotion Company had 3,000 ounces in beginning work in process inventory (60% complete). During the period, 40,400 ounces were completed. The ending work in process inventory was 600 ounces (25% complete). What are the total equivalent units for conversion costs? * Please explain how you got to your answer. Solution Comptation of the total equivalent units for direct materials if materials are added at the beginning of the process: .

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The fiscal 2012 financial statements of Barney Services shows average net operating assets (NOA) of $7,416 million, average net nonoperating obligations (NNO) of $456 million, average total liabilities of $3,508 million, and equity of $7,040 million. The companyâ€™s 2012 financial leverage (FLEV) is: Choose from list below: 0.179 0.949 0.061 0.065 Solution Financial leverage formual = Average net nonoperating obligation / average equity = 456 / (7416 - 456) = 456 /6960 = .065 correct option is \"D\" -.065 .

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The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criteria of this plan is linked to growth in earnings per share. When annual EPS growth is 12%, the Rouse executives earn 100% of the shares; if growth is 16%, they earn 125%. If EPS growth is lower than 8%, the executives receive no additional compensation. In 2014, Joan Devers, the controller of Rouse, reviews year-end estimates of bad debt expense and warranty expense. She calculates the EPS growth at 15%. Kurt Adkins, a member of the executive group, remarks over lunch one day that the estimate of bad debt expense might be decreased, increasing EPS growth to 16.1%. Devers is not sure she should do this because she believes that the current estimate of bad debts is sound. On the other hand, she recognizes that a great deal of subjectivity is involved in the computation. Questions What is the ethical dilemma for Devers? What are the alternative solutions? Evaluate whether the proposed solution is ethical. Who are the stakeholders? How are they impacted? Solution What is the ethical dilemma for Devers. Few executives ever see jail even though the results of unethical behavoir can greatly affect stakeholders. The prevalence of major corporate scandals over the years has helped increase public awareness of two major ethics concepts -- stakeholders and ethical dilemmas. While these concepts are not unique to the study of business, they tend to be more commonly applied to ethical corporate decision making. For example, the corporate social responsibility movement is a direct application of these ideas in real life business practice. But what exactly do they mean? Stakeholders Stakeholders are broadly defined as anyone who is impacted by a decision-maker .

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The EU recently admitted the Eastern European countries. How do you assess the impact of the EU\'s expansion? What are the costs and benefits of the expansion for the U.S. economy? Solution The accession of eight Central and Eastern European countries (CEECs) to the European Union in 2004 will bring some important benefits. The new members will gain from reduced bar- riers to trade and investment. By 2010, the movement of labor will also be freed. But accession to the EU is neither a necessary nor a sufficient con- dition for economic growth. The combined effects of market access and economic liberalization, not EU membership, optimize economic growth. Unfortunately, the incoming EU members had to choose between the common market on the one hand and economic liberty on the other. Instead of concluding free-trade agreements with the EU, the CEECs were cajoled into an increas- ingly centralized superstate, in which most of their comparative advantages will be legislated out of existence. As a result, economic growth in Central and Eastern Europe (CEE) will continue to be suboptimal. The loss of potential future economic growth will be only partly offset by the CEEC .

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