chapter 14 production cycle exam 1

Engineering

develops specifications to build products - docs used: bill of materials

Production Planning

schedules items to be produced based on sales forecasts and raw material availability - docs used: purchase requisition, master production schedule, production orders

Warehouse

assemble products - docs used: production orders, finished goods receipt

Cost Accounting

responsible for accuracy of amount capitalized as finished goods inventory - docs used: cost settlement

Other Departments

support process through communicating sales and ordering anticipated raw materials

Production Cycle Steps

1) Product Design, 2) Planning + Scheduling, 3)Production Operations, 4)Cost Accounting

Bill of Materials

defines amount of raw materials needed to complete inventory item - AIS stores per item

Master Production Schedule (MPS)

shows on-hand inventory, scheduled production, and anticipated sales - AIS can report on them

Production Order

sent from Production Planning to WH, notifies them of inventory to be assembled

Finished Goods Receipt

screen used by WH to indicate goods are complete

Cost Settlement

screen used by cost accounting department to adjust WIP to FG inventory

Job Costing

used for unique inventory, cost attributed to specific products/services

Process Costing

used for uniform inventory, average cost applied to products/services

Items used to Determine FG Inventory

Raw Materials, Direct Labor Cost, Direct Machinery

Standard Costing

defines a standard or budgeted cost of the inventory to be produced, part of planning/budgeting