different costing methods , accounting homework help

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Business Finance

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informal memo on scenario attached.

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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. Click the Assignment Files tab to submit your assignment.
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Explanation & Answer

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Outline
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Introduction

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Conclusion

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References


Running head: PRODUCTION REPORT MEMO

Production Report Memo
Student Name:
Institution:
Date:

1

PRODUCTION REPORT MEMO

2

Production Report Memo
To: Mr. Davis Skaros, Production Manager
From: Accounting Department
Date: 6/7/2017
Subject: Evaluation of the Production Department’s Production Cost
This memorandum is aimed at addressing your concerns regarding the production cost in
your department, whereby the ending inventory indicated that an equivalent amount of 2000
units. You, however, complained that you felt you had at least twice the amount in ending
inventory. The production department of the company applies process costing whereby products
pass through various processes before becoming a finished product. No matter the type of
costing method a company adopts, the company arrives at a competitive pricing of the product.
In process costing, determination of cost of each process is done separately(Popesko, & Novak,
2014). The ...


Anonymous
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