Refer to the scenario located in the

**“Analyze, Think, Communicate” section 12-5 of Ch. 12, “Job-Order, Process, and Hybrid Costing Systems” of****Fundamental Managerial Accounting Concepts***.*This scenario involves an altercation between Rene Alverez and Bill Sawyer and requires you to weigh in with calculations and comments on the matter.**Read** the scenario in the textbook and complete the activity below.

**Compute** the equivalent cost per unit, assuming the ending inventory is considered to be 40 percent complete.

**Compute** the equivalent cost per unit, assuming the ending inventory is considered to be 60 percent complete.

**Write** a 350-word summary of your calculations and findings. Comment on Mr. Sawyer’s motives for establishing the percentage of completion at 60 percent rather than 40 percent.

**Submit** calculations and summary.

Attached is section 12-5 for assignment.