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Week Four
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.
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ACC 561 Week 4 Team Assignment Cost Accounting Systems
(2 PPT)