Ethical Issue: The company manufactured high-tech components passes through two production processing departments. The department managers are partially compensated on the basis of units of products completed and transferred out relative to units of products put into production. The head of molding department has three new employees who were not technically skilled. Due to being not technically skilled the units produced in June had minor molding defects. To maintain normal high rate of completion, the quality control inspector was told to pass the product through inspection and pass to the assembly department saying the unit had defects which are non-detectable to the human eye. To identify: (a) Potential stakeholders involved in the situation and (b) alternative to be taken in the situation and way to prevent the occurring of given situation.

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Ethical Issue: The company manufactured high-tech components passes through two production processing departments. The department managers are partially compensated on the basis of units of products completed and transferred out relative to units of products put into production. The head of molding department has three new employees who were not technically skilled. Due to being not technically skilled the units produced in June had minor molding defects. To maintain normal high rate of completion, the quality control inspector was told to pass the product through inspection and pass to the assembly department saying the unit had defects which are non-detectable to the human eye.

To identify: (a) Potential stakeholders involved in the situation and (b) alternative to be taken in the situation and way to prevent the occurring of given situation.

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Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Other costs incurred during the month were: Direct material added Direct labour Production overheads $272,000 $254,000 $ 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 Direct material added Conversion costs 100% 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 Direct material added 100% 60% 40% Conversion costs There were no unfinished goods in process 2 at the…

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