Production Costs

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.

Please follow attached grading guide.