Accounting Information System Chapter 14

Problems 14.1

No. Term Definitions

1 Bill of materials c. A list of the raw materials used to create a finished product

2 Operations list k. A document that lists the steps required to manufacture a finished goods

3 Master production schedule i. i. A document that tracks transfer of inventory form one work center to another

4 Lean manufacturing m. A production planning technique that is an extension of the just in time inventory control method

5 Production order j. A document that authorizes manufacture of a finished goods

6 Material requisition d. A document used to authorize removal of raw materials form inventory

7 Move ticket i. i. A document that tracks transfer of inventory form one work center to another

8 Job-time ticket h. A document that reocrds labor costs associated with manufacturing a product

9 Job-order costing f. A cost accounting method assigns costs to specific batches or production runs and is used when the product or service consists of uniquely identifiable items

10 Cost driver a. a. A factor that causes costs to change

11 Throughput b. b. A measure of the number of good units produced in a period of time

12 Computer-integrated manufacturing c. c. A lists of the raw materials used to create a finished product

Problems 14.2

No Problem Internal Control

1 A Production order was initiated for a product that was already overstocked in the company warehouse • production planning systems

• Review and approval of production schedules and orders

• Restriction of access to production orders and production schedules

2 A Production employee stole items of work in process inventory • Physical access control

• Documentation of all inventory management

• Segregation of duties, custody of assets from recording and of removal

3 The rush order tag on a partially completed production job became detached from the materials and lost, resulting in a costly delay • Production planning systems

• Review and approval of production...