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Scenario: Davis Skaros has recently been promoted to production manager. She has just started to receive various managerial reports, including the production cost report you prepared. It showed her department had 2,000 equivalent units in ending inventory. Her department has had a history of not keeping enough inventory on hand to meet demand. She has come to you, very angry, and wants to know why you credited her department with only 2,000 units when she knows the department had at least twice that many physical units on hand.
Question 1: Prepare a maximum informal memo and explain to Ms. Skaros why her production cost report showed only 2,000 equivalent units in ending inventory. Using a professional tone, explain to her clearly why your report is accurate.
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