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.
