Sign In
Not register? Register Now!
Essay Available:
Pages:
2 pages/β‰ˆ550 words
Sources:
Check Instructions
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Coursework
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 11.23
Topic:

Skaros Memo. Ending Inventory. Accounting, Finance, SPSS Coursework

Coursework Instructions:

Purpose of Assignment
The materials covered this week distinguish between the different costing methods and provides needed tools for decision making. This assignment focuses on determining equivalent units in a production business setting.
Assignment Steps
Scenario: Davis Skaros has recently been promoted to production manager. He has just started to receive various managerial reports, including a cost report. 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 600-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.

Coursework Sample Content Preview:

Skaros Memo
Student’s Name
Institution
Course
Date
SKAROS MEMO
TO: DAVID SKAROS, PRODUCTION MANAGER
FROM: DEPARTMENT OF ACCOUNTING
DATE: 11/8/2019
SUBJECT: ENDING INVENTORY
The reason as to why there is a misunderstanding in the inventory quantity of your department is because quantity can be rationed in two distinct methods depending on the information that is given. For the organization to have a clear understanding of the disputes that are arising from the department of production, it is essential to evaluate inventory management. Inventory management comprises of accounting, storage, and proper planning of purchasing. Therefore an effective system of inventory management ascertains;
* What to purchase
* The quantity being purchased
* The store
According to the report, it is clear that there are two departments in your organization that are having issues over the inventory. The finance manager will try to invest less in the inventory. Still, the production manager emphasizes that the organization should acquire more inventory because he does not want to have any disruptions in production due to the scarcity of inventory. The primary purpose of having an inventory in an organization to ensure there is no overstocking or understocking (Holtzman, 2013). When there is overstocking, it means that liquidity will reduce, and other processes of production will be interrupted.
On the other hand, understocking causes a stoppage of tasks. Therefore the inventory of any organization should have reasonable limits. The main goals of inventory management are financial and operational purposes. Operational purposes mean that the organization makes some materials available in sufficient qua...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Order

πŸ‘€ Other Visitors are Viewing These APA Coursework Samples:

HIRE A WRITER FROM $11.95 / PAGE
ORDER WITH 15% DISCOUNT!
Order Now