Scenario: Davis Skaros has recently been promoted to production manager. He has just started to receive...

60.1K

Verified Solution

Question

Accounting

Scenario: Davis Skaros has recently been promoted to productionmanager. He has just started to receive various managerial reports,including the production cost report you prepared. It showed hisdepartment had 2,000 equivalent units in ending inventory. Hisdepartment has had a history of not keeping enough inventory onhand to meet demand. He has come to you, very angry, and wants toknow why you credited him with only 2,000 units when he knows hehad 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 equivalentunits in ending inventory. Using a professional tone, explain tohim clearly why your report is accurate.

Answer & Explanation Solved by verified expert

4.2 Ratings (879 Votes)

To Production Manager David Skaros From Accounting Department Date Subject Ending Inventory related query MrSkaros this is to explain to you the reasons for not maintaining enough inventory to meet demands Obsolete Inventory Overstocking on products runs the risk of the product becoming obsolete This is true especially in technology sectors such as smartphones and televisions but no industry is exempt Even the latest kids game craze might inspire you to place a large order If the buzz dissipates quickly and kids arent looking for the game youll be left See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member