David Skaros has recently been promoted to production manager. He has just started to receive various material reports, including the production cost report that you prepared. It showed that this 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.
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