Description
informal memo on scenario attached.
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Explanation & Answer
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Outline
I.
Introduction
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Conclusion
III.
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 ...