Production costs Generally Accepted Accounting Principles

Anonymous
timer Asked: Jan 2nd, 2018
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Question description

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.

Tutor Answer

Tutor_Booth
School: Rice University

Attached.

Running head: PRODUCTION COSTS

1

Production Costs
Student’s Name
Institution
Date

PRODUCTION COSTS

2
MEMORANDUM

TO: David Skaros, Production manager
FROM: John Williams, Accounting Department
DATE: January 2, 2018
SUBJECT: The Ending Inventory
Two different approaches are used to evaluate the amount in the production costs report
within the production department. These two approaches are the significant reasons for the
misunderstanding of the inventory units that were listed. It is essential to think about the benefits
of the stock management to clarify the debate from the division in the production. Also, taking
care of the inventory is an essential step as it helps in the process of decision making on topics
such as what should be bought, amount to be purchased and where the extra amount should be
kept.
In other cases, there exist several conflicting interests within the stock management
depa...

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Review

Anonymous
Outstanding Job!!!!

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