Davis Skaros has recently been promoted to production manager

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.

Davis Skaros has recently been promoted to production manager

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.

Firstly,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.

Secondly, Using a professional tone, explain to him clearly why your report is accurate.
Purpose of Assignment
Furthermore, The materials covered this week distinguish between the different costing methods and provides needed tools for decision making.

Moreover, This case study focuses on determining equivalent units in a production business setting.

Resources
Production Costs Grading Guide
Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC)
There are also additional tutorials via the web offering support for Office products.
Assignment Steps

More details:

What do you mean by production cost?
Production or product costs refer to the costs incurred by a business from manufacturing a product or providing a service. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead.

What are the types of cost of production?
 There are a number of different types of costs of production;
Firstly, fixed costs.
Secondly, variable costs.
Thirdly, total cost, average cost.
Fourthly, marginal cost.