Problem
Mitchell West is a new entry-level accountant at Spectacular Specs and has been working on allocating costs to jobs that have been completed for the month. Mitchell notices that the job cost sheet for DEALO listed 115 hours for labor. Mason, who is Mitchell's supervisor, altered the job cost sheet to allocate 175 hours toward thisjob, which increased the direct labor and overhead costs extremely above those estimated. Mitchell inquired with his supervisor, Mason, about this allocation and was told that due to DEALO being paid off of a government contract, the invoice must be billed at cost plus additional hours to allow Spectacular Specs to make more profit since more costs are being allocated to thisjob. Mason also explained that the additional direct labor hours will also be allocated toward additional follow-up assignments.
According to the Institute of Management Accountants' (IMA's) statement of professional conduct, how would you handle this situation in an ethical manner?