Discuss the documents used in a batch processing system
The production schedule is the formal plan and authorization to begin production. It describes the specific products to be made, quantities per batch and manufacturing time table.
The bill of materials (BOM) specifies the types and quantities of the RM and subassemblies used to produce one unit of finished product.
A route sheet shows the production path that a particular batch of product follows during manufacturing (sequence of operations and standard time of each task).
The work order draws from BOMs and route sheets to specify the materials and production for each batch. These, together with move tickets, initiate the manufacturing process.
A move ticket records work done in each work center and authorizes the movement of the job or batch from one work center to the next.
A materials requisition authorizes the storekeeper to release materials to individuals or work centers in the production process, usually at standard quantities.
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Lucent Technology maintains a gross margin of 40% on all of its merchandise. In April the company had a beginning inventory of $518,700, net purchases of $312,400, and net sales of $750,400. Use the gross profit method to estimate the cost of ending inventory as of March 31.
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Warren's Ice Cream makes 4 different flavors of ice cream using their secret process and top secret recipes. Each of their flavors is equally popular and experiences a demand of 5,000 gallons/year
Warren's process is capable of producing 100 gallons/day once they incur the $25 setup cost. The ice cream holding cost is 10% of the $5 per gallon price. Warren's plant runs 250 days a year and stays busy doing so, but management feels they can add another flavor to their product line and increase their revenue. Which of the following statements is appropriate for this scenario? A) Warren's can comfortably add a fifth flavor without increasing the number of days they operate. B) Warren's cannot add the fifth flavor because the holding cost would increase. C) Warren's can add the fifth flavor only if there is zero setup time between flavors. D) Warren's cannot add the fifth flavor because demand would exceed capacity.