Royal Meat Processing Company buys and processes livestock for sale to supermarkets. In connection with the audit of the company’s financial statements, you have prepared the following notes based on your review of inventory procedures: 1. Each livestock buyer submits a daily report of his or her purchases to the plant superintendent. This report shows the dates of purchase and expected delivery, the vendor and the number, and weights and type of livestock purchased, as shipments are received, any available plant employee counts the number of each type received and places a check mark beside this quantity on the buyer’s report. 2. Vendors’ invoices, after a clerical review, we sent to the appropriate buyer for approval and returned to the accounting department. A disbursement voucher and a check for the approved amount the prepared in the accounting department. Checks are forwarded to the treasurer for signature. The treasurer’s office sends signed checks directly to the buyer for delivery to the vendor. 3. Livestock carcasses are processed by lots. Each lot is assigned a number. At the end of the each day a tally sheet reporting the lots processed, the number and type of animals in each lot, and the carcass weight is sent to the accounting department, where a perpetual inventory record of processed carcasses and their weights is maintained. 4. Processed carcasses are stored in a refrigerated cooler located in a small building adjacent to the employee parking lot. The cooler is locked when the plant is not open, and a company guard is on duty when the employee report for work and leave at the end of their shifts. Supermarket truck drives wishing to pick up their orders have been instructed to contact someone in the plant if no one is in the cooler. 5. Substantial quantities of by-products are produced and stored, either in the cooler or elsewhere in the plant. By-products are initially accounted for as they are sold. At this time the sales manager prepares a two-part from: one copy serves as authorization to transfer the goods to the customer and the other becomes the basic for billing the customer. Required: For each of the numbered notes 1 to 5 above, state the weaknesses, if any, in the present inventory procedures and your suggestion, if any, for improvement.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Royal Meat Processing Company buys and processes livestock for sale to supermarkets. In connection with the audit of the company’s financial statements, you have prepared the following notes based on your review of inventory procedures:
1. Each livestock buyer submits a daily report of his or her purchases to the plant superintendent. This report shows the dates of purchase and expected delivery, the vendor and the number, and weights and type of livestock purchased, as shipments are received, any available plant employee counts the number of each type received and places a check mark beside this quantity on the buyer’s report.
2. Vendors’ invoices, after a clerical review, we sent to the appropriate buyer for approval and returned to the accounting department. A disbursement voucher and a check for the approved amount the prepared in the accounting department. Checks are forwarded to the treasurer for signature. The treasurer’s office sends signed checks directly to the buyer for delivery to the vendor.
3. Livestock carcasses are processed by lots. Each lot is assigned a number. At the end of the each day a tally sheet reporting the lots processed, the number and type of animals in each lot, and the carcass weight is sent to the accounting department, where a perpetual inventory record of processed carcasses and their weights is maintained.
4. Processed carcasses are stored in a refrigerated cooler located in a small building adjacent to the employee parking lot. The cooler is locked when the plant is not open, and a company guard is on duty when the employee report for work and leave at the end of their shifts. Supermarket truck drives wishing to pick up their orders have been instructed to contact someone in the plant if no one is in the cooler.
5. Substantial quantities of by-products are produced and stored, either in the cooler or elsewhere in the plant. By-products are initially accounted for as they are sold. At this time the sales manager prepares a two-part from: one copy serves as authorization to transfer the goods to the customer and the other becomes the basic for billing the customer.
Required: For each of the numbered notes 1 to 5 above, state the weaknesses, if any, in the present inventory procedures and your suggestion, if any, for improvement.
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