Description
Purpose of Assignment
The materials covered this week distinguish between the different costing methods and provides needed tools for decision making. This case study focuses on determining equivalent units in a production business setting.
Assignment Steps
Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC)
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Scenario: Davis Skaros has recently been promoted to production manager. He has just started to receive various managerial reports, including the production cost report you prepared. It showed his department had 2,000 equivalent units in ending inventory. His department has had a history of not keeping enough inventory on hand to meet demand. He has come to you, very angry, and wants to know why you credited him with only 2,000 units when he knows he had at least twice that many on hand.
Prepare a maximum 700-word informal memo and explain to Mr. Skaros why his production cost report showed only 2,000 equivalent units in ending inventory. Using a professional tone, explain to him clearly why your report is accurate.
Format the assignment consistent with APA guidelines.
Explanation & Answer
here are the responses attached. kindly fill the part on (TO:________ ) with your names and in case of any concerns, reach me for an immediate response
RUNNING HEAD: Equivalent Units
1
Memorandum: Equivalent Units
Name of student
Institution
Instructor
Date
2
Equivalent Units
MEMORANDUM
TO: David Skaros, the Production Manager.
FROM: (Name of student)
DATE: March 29, 2017
SUBJECT: Equivalent Units in Your Department
I am writing to expound further on the crediting of 2000 equivalent units on your department’s
end of year inventory while you had double the amount at hand during the starting of the year
record. Firstly, as you know, our organization deals with production where input units are used to
give final products through the process of manufacturing. This means that production has to be a
c...
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