Assignment 2: Ethics Writing
Unit 9 [114: Accounting I] Assignment 2 of 2: Ethics Writing Assignment Ethics play a vital role in business and in the accounting profession. Here is an opportunity to connect
you current learning about inventory with the profession’s commitment to ethics.
BYP6-7: R. J. Graziano Wholesale Corp. uses the LIFO method of inventory costing. In the current
year, profit at R. J. Graziano is running unusually high. The corporate tax rate is also high this year,
but it is scheduled to decline significantly next year. In an effort to lower the current year’s net income
and to take advantage of the changing income tax rate, the president of R. J. Graziano Wholesale
instructs the plant accountant to recommend to the purchasing department a large purchase of
inventory for delivery 3 days before the end of the year. The price of the inventory to be purchased
has doubled during the year, and the purchase will represent a major portion of the ending inventory
value.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2014). Accounting principles (12th ed.). Hoboken, NJ:
John Wiley & Sons, Inc. You are to write a 2 – 4 page paper. Use the ethics resources for accounting. Make sure to cite at
least one source from those provided and reference them (in your separate reference page) following
APA guidelines.
Respond thoroughly to the following questions in your reflective essay:
1. What is the effect of this transaction on this year and next year’s income statement and
income tax expense? Why?
2. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing,
would the president give the same directive?
3. Should the plant accountant order the inventory purchase to lower income? What are
the ethical implications of this order?
4. Which Code of Conduct principle would you act on from the professional codes of
conduct guiding ethical behavior in this field (Provide the name of the organization, and
the code of conduct that pertains to why you act, and then provide the URL for your
source)?
order to act in accordance with your chosen principle to address this situation?
a. Hint:
i. Remember that income taxes are an expense item that would be found on
the income statement. ii. Make sure you take note that this is a LIFO (last in, first out inventory
method). Submit your paper to the Unit 9 Assignment Dropbox. Unit 9 Writing Assignment – Grading Rubric
Unit 9 Assignment Part 2 (BYP6-7)
Earned 30
income statement and income tax expense? Why?
2. If R. J. Graziano Wholesale had been using the FIFO method of
inventory costing, would the president give the same directive?
3. Should the plant accountant order the inventory purchase to
lower income? What are the ethical implications of this order?
Question 4: Based on chosen code of conduct principle(s), provides
step-by-step action plan to address the ethics case situation based on
your chosen principle(s). 10 Uses correct grammar, and spelling.
and reference page. 5 Total Points 50 points 2
