Tom recently been promoted to production manager. He has just started to receive various managerial reports, including the production cost report Jennifer prepared. It showed Tom's 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 Jennifer very angry, and wants to know why Jennifer credited him with only 2,000 units when he knows he had at least twice that many on hand.

Question:

What is the purpose of a production report?

Explain to Tom why his production cost report showed only 2,000 equivalent units in ending inventory?

Why would Tom think he has more inventory than what Jennifer report in her PRODUCTION REPORT?