Expert answer:Production Costs

Solved by verified expert: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.Please used attached Memo Format!
samplebusinessmemo.doc

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MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
CC:
All Employees
Corporate Office
November 10, 2015
Recycling and Cost-Saving Initiatives
Board of Directors
In response to the rising cost of traditional energy sources, as well as our nation’s effort to find
more renewable energy, our company will be implementing a number of cost-saving initiatives.
These practices will be in effect immediately at all divisions within the organization.
The first change you will experience concerns your current method of compensation. Paper
checks will no longer be issued through the payroll department. Instead, your paycheck will be
deposited directly into your checking account. This initiative is expected to save the company up
to $14,500 per year in costs related to payroll processing hours, envelopes, postage, office
supplies, printer cartridges, toner, and printer paper. It will also reduce our waste output and
decrease our energy footprint while allowing you to access your pay more quickly.
Another energy-saving procedure that will go into effect immediately concerns after-hours
computer use. The energy.gov website suggests that using the hibernation function can save as
much as $30 per year per computer in energy costs (2015). As a result, all desktop computer
terminals in every office will be set to enter hibernation mode overnight. IT technicians will be
stopping by each workstation during the next 2 weeks to implement these settings on your
computer.
In addition to these energy- and cost-saving strategies, recycling initiatives will be implemented.
Containers for several types of renewable materials will be placed throughout the building.
Containers for the following items will be placed in the break rooms, kitchens, and other central
gathering areas on each floor.
Metals: Metal products include items constructed primarily out of aluminum and tin. Examples
include tin cans, aluminum foil, soda cans, and other similar products. Please empty any metal
containers before placing them into the appropriate bin.
Paper: Paper products include cardboard, newspapers, magazines, appropriate packaging
material, junk mail, cartons, envelopes, and small boxes. Larger boxes and/or other over-sized
recyclable containers, e.g., computer/printer boxes, should be placed next to the appropriate bin
in one of the recycling areas.
Plastics: Plastic items include fast-food cartons, some commercial packaging, used notebook
sleeves, pop bottles, and other plastic products. Please empty any plastic containers before
placing them into the appropriate bin.
Recycling and Cost-saving Initiatives
Page 2
November 10, 2015
At the end of each day, the cleaning crew will remove these materials and deliver them to a local
recycling plant.
Thank you very much for your cooperation in helping our company reduce costs and create a
more eco-friendly environment.
References
Energy.gov. (2015) Energy efficient computer use. Retrieved from
http://energy.gov/energysaver/articles/energy-efficient-computer-use
…
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