Question;1List and describe the four standards in the IMA?s Statement of Ethical Practice. As part of youranswer, be sure to provide an example of an action that violates the standard.Question #2 (14 points)Consider the following information, prepared based on a monthly capacity of 50,000 units:CategoryVariable manufacturing costsFixed manufacturing costsVariable marketing costsFixed marketing costsCost per Unit$12.00$1.00$3.00$2.00Capacity cannot be added in the short run and the firm currently sells the product for $20per unit.Consider each of these scenarios independent of each other.a) The company is currently producing 50,000 units per month. A potential customer hascontacted the firm and offered to purchase 10,000 units this month only. The customer iswilling to pay $18 per unit. Since the potential customer approached the firm, there will be novariable marketing costs incurred. Should the company accept the special order? Why or whynot? Be specific.b) The company is currently producing 40,000 units per month. A potential customer hascontacted the firm and offered to purchase 10,000 units this month only. Since the potentialcustomer approached the firm, there will be no variable marketing costs incurred. What is theminimum amount that the firm should be willing to accept for this order?Question #3 (44 points)Consider the following information:Beginning inventory (units)Budgeted units to be producedActual units producedUnits soldVariable manufacturing costs per unit producedVariable marketing costs per unit soldBudgeted fixed manufacturing costsFixed marketing costsSelling price per unitVariable costing operating incomeAbsorption costing operating incomeVariable costing beginning inventory ($)Absorption costing beginning inventory ($)Variable costing ending inventory ($)Absorption costing ending inventory ($)PVVAllocated fixed manufacturing costsQ1020,00019,000Q2JA$150$20$500,000$200,000$300B20,00020,60020,600$150$20$500,000$200,000$300$1,978,000Q31,10020,000QR$150$20$500,000$200,000$300SK$1,859,000$165,000CDEFGHITULMNOP$75,000$87,500V$480,000There are no price, efficiency, or spending variances, and any production-volume varianceis directly written off to cost of goods in the quarter in which it occurs.Complete the missing figures from the above Table. You need to show your work in order tobe eligible for partial credit.Q1ABCDEFGHIQ2JKLMNOPQ3QRSTUVQuestion #4 (12 points)a) What is the goal of the EOQ model?b) Why does a firm hold ?safety stock??c) What costs are a firm trying to balance when it decides on how much safety stock to hold?Question #5 (9 points)What are some accounting changes that a firm should make if it decides to implement a JITinventory management system? Why are those changes necessary? Be specific!Question #6 (5 points)What is the justification for using backflush costing? Be specific!
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