MYLAB EXCELLENCE IN BUSSI COMM ETEXT
MYLAB EXCELLENCE IN BUSSI COMM ETEXT
12th Edition
ISBN: 9780135854907
Author: BOVEE
Publisher: PEARSON
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Chapter 9, Problem 9.22E
Summary Introduction

To determine:

Approaches to draft a negative message to a reader.

Concept Introduction

Choosing a direct or an indirect communication approach to send across bad news to the reader.

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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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