Ethical Case Study: Case Summary: The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect. To Identify: The stakeholders in this situation.

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Answer 1

Question

Chapter 5, Problem 5.6BYP

a)

To determine

Ethical Case Study:

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

To Identify: The stakeholders in this situation.

b)

To determine

To Identify: The ethical considerations in this situation.

c)

To determine

To Identify: The possible action of Mr. S.

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I am trying to find the accurate solution to this general accounting problem with the correct explanation.

Sunrise Inc. has provided the following data for the month of October: 1. The balance in the Finished Goods inventory account at the beginning of the month was $85,000 and at the end of the month was $50,300. 2. The cost of goods manufactured for the month was $310,000. 3. The actual manufacturing overhead cost incurred was $74,500 and the manufacturing overhead cost applied to Work in Process was $78,000. 4. The company closes out any underapplied or overapplied manufacturing overhead to the cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for October is ___.

I need help with this General accounting question using the proper accounting approach.

Answer 2

Question

Chapter 5, Problem 5.6BYP

a)

To determine

Ethical Case Study:

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

To Identify: The stakeholders in this situation.

b)

To determine

To Identify: The ethical considerations in this situation.

c)

To determine

To Identify: The possible action of Mr. S.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 5.6BYP

a)

To determine

Ethical Case Study:

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

To Identify: The stakeholders in this situation.

b)

To determine

To Identify: The ethical considerations in this situation.

c)

To determine

To Identify: The possible action of Mr. S.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.6BYP

a)

To determine

Ethical Case Study:

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

To Identify: The stakeholders in this situation.

b)

To determine

To Identify: The ethical considerations in this situation.

c)

To determine

To Identify: The possible action of Mr. S.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.6BYP

a)

To determine

Ethical Case Study:

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

To Identify: The stakeholders in this situation.

b)

To determine

To Identify: The ethical considerations in this situation.

c)

To determine

To Identify: The possible action of Mr. S.

Answer 6

Chapter 5, Problem 5.6BYP

a)

To determine

Ethical Case Study:

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

To Identify: The stakeholders in this situation.

Answer 7

Chapter 5, Problem 5.6BYP

a)

To determine

Ethical Case Study:

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

To Identify: The stakeholders in this situation.

Answer 8

b)

To determine

To Identify: The ethical considerations in this situation.

Answer 9

b)

To determine

To Identify: The ethical considerations in this situation.

Answer 10

c)

To determine

To Identify: The possible action of Mr. S.

Answer 11

c)

To determine

To Identify: The possible action of Mr. S.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

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Solution Summary: The author explains the ethical considerations in the case of accountant, senior management, and plants personnel.

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To Identify: The ethical considerations in this situation.

To Identify: The possible action of Mr. S.

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Chapter 5 Solutions