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Inventory Management

Sprint Shoes, Inc. Inventory Control Exercise

See attached file. Sprint Shoes, Inc. had a beginning inventory of 9,000 units on January 1, 2007. The costs associated with the inventory were: Materials: $13 per unit Labor: $8 per unit Overhead: $6.10 per unit During 2007, the firm produced 42,500 units with the following costs: Material: $15.50 Labor: $7.80 pe

Common Elements of Four Operations Management

Consider these questions: What are some common elements or aspects of the four operations management: producitivity, inventory, capacity, quality? Compare the relative importance of these in manufacturing (e.g. Excellent Mfg. Co.) to the importance in other kinds of business, e.g. book store. Also, consisider facility layout

kudler review flowcharts

Management at Kudler Fine Foods has reviewed the flowcharts prepared in Week Two and is requesting information on controls that will be required. 1,100 words in which you address the following: - Analyze the risks in the systems that your team analyzed. - Identify all risks and internal control points by incorporating the

Ystad Industries: Did Performance Improve?

Ystad Industries: Roland Anderson is the manager of the Ekland Division of Ystad Industries. He is one of several managers being considered for position of CEO, as the current CEO is retiring in a year. All divisions use standard absorption costing. The division has the capacity to produce 50,000 units a quarter and quarterly

Trade off between substantive testing and testing of control

3. What is the most likely course of action that an auditor would take after determining that performing substantive tests on inventory will take less time than performing tests of control? a) access control risk at a low level b) perform both tests of controls and substantive tests on inventory c) perform only substantive

Operations Management for Managers

How is inventory like water flowing into and out of a bathtub? What is the inventory balancing equation? How do you measure how much inventory has been used during a specific time period, say a year? In operations that convert materials from one stage to another, like in manufacturing and baking, how is labor part of the invento

Storage and Handling Information

I have been searching for some information. I was wondering is someone can help and point me in the right direction for finding information on this topic: Storage and handling decisions are difficult. The wrong decision can be costly to the organizations survivability. How can a organization make more informed decisions rega

Inventory Control

The warehouse manager on a construction is trying to figure out a rational way to control inventory for several parts and has asked for your help. The first part is a particular type of valve actuator. It is contained in the material management system and the projections are that they will be installed at a rather steady rate ov

Journalizing Transactions for Inventory

Thelma's Amusements completed the following transactions during November 2012: Nov 1 Purchased supplies for cash, $700. 4 Purchased inventory on credit terms of 3/10, n/eom, $9,600. 8 Returned half the inventory purchased on November 4. It was not the inventory ordered. 10

Operation Management

Southeast Hospital currently buys surgical gloves in lots of 1,500 boxes once every four months. Under this ordering policy, demand for gloves will be completely satisfied with no surplus and no shortage. The carrying cost per box is $15.00 per box per year, which is equivalent to 10% of cost, and the ordering cost is $150 per o

Amount of inventory cost for the order quantity

The I-75 Carpet Discount store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. The carpet manufacturer normally charges the store $8 per yard for the carpet; however, the manufacturer has offered a discount price of $6.50 per y

Inventory Management

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost) and the ordering cos

Determining the Cheapest Order Policy in the Given Case

A local nursery, Greens, uses 1560 bags of plant food annually. It costs $10 to place an order for plant food. In an effort to reduce its inventory Rapid Grower, the supplier of plant food for Green, is offering Greens two additional price breaks to consider. If the nursery orders a three-month supply, the cost per bag s $16. If

Economic Order Quantity: Doritos and Pepsi

See the attached file. Doritos Pepsi Annual Demand 500 1000 Ordering Cost $ 25.00 $ 10.00 Holding Cost (one unit for one year) $ 0.25 $ 0.35 Unit Cost $ 1.00 $ 1.50 On Hand Inventory 25 15 Lead Time (weeks) 3 2 Scheduled Receipts 20 0 Backorders 0 0

Firm's Inventory Level and Inventory Turnover Ratio

Please help with the following finance-related problem. Please provide the answers in an Excel spreadsheet. Williams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and incre

Inventory Control Importance in an Enterprise

1.Discuss the importance of inventory control with respect to supply and demand. 2.What benefit can tools such as ABC analysis and just-in-time controls provide for an organization? 3.How can an enterprise resource planning system assist a firm with improving its business operations?

Tests of account balances are intended to obtain audit evidence about the fairness of the inventory accounts or, alternatively, identify material misstatements in the amounts presented. Audit procedures can only be selected after the auditor determines specific audit objectives related to management assertions. Management Assertions 1. Existence or occurrence 2. Completeness 3. Rights and obligations 4. Valuation or allocation 5. Presentation and disclosure Required: For each audit procedure below, identify the related management assertion(s) that the audit procedure tests and explain the audit objective of the procedure. (a) Trace totals of inventory files to the general ledger, including proper classification as raw materials, WIP, or finished goods. (b)Test additions to inventory by selecting a sample of recorded purchases from the inventory records and examining supporting documents. (c) Review consignment contracts and scan inventory records for inclusion of amounts for any consigned items not owned. (d)Reperform calculations supporting decisions about write-downs or write-offs of inventory and trace any adjustment amounts to the inventory records. (e) Using computer-assisted auditing techniques reperform calculations testing mathematical accuracy, including totals extensions of price and quantity and unit or batch aggregations; recalculation is based on appropriate application of the client costing method (FIFO, LIFO, weighted average, specific identification, etc.).

Tests of account balances are intended to obtain audit evidence about the fairness of the inventory accounts or, alternatively, identify material misstatements in the amounts presented. Audit procedures can only be selected after the auditor determines specific audit objectives related to management assertions. Management

Inventory Management Manufacturing

The manager of a furniture manufacturing plant hopes to achieve a better allocation of inventory control efforts by adopting an ABC approach to inventory control. The yearly usages are listed below. Classify the items in A, B, and C categories according to annual dollar usage. Item Annual Usage Unit Cost L

Alternative Sources of Evidence

The following situations present the auditor with alternative sources of evidence regarding a particular assertion. a. For each of the following situations, identify the assertion(s) the auditor is most likely testing with the procedure. b. For each situation, identify which of the two sources presents the most persuasive ev

Management of Inventory Example

Original only please in 200-250 words with two references. Locate a firm that incorporates the fixed order quantity system, fixed order period system, or a hybrid system to its management of inventory. Identify the type of inventory system it uses. Indicate the type of inventory issues the firm has such as stock out co

The Management of Accounts Receivable and Inventories

Miranda Tool Company sells to retail hardware stores on credit terms of "net". Annual credit sales are $18 million and are spread evenly throughout the year. The company's variable cost ratio is 0.70, and its accounts receivable average $1.9 million. Using this information, determine the following for the company: a. Average

Queries

Write queries to answer the following questions. Note some questions, you may have to create two queries - one to calculate an invoice total and the second to answer the question asked. a) How many kinds of inventory items does S & S sell? b) How many sales were made during October? c) What were total sales in October?

Define Terms, Discuss Process and Techniques, Six Sigma

Succinctly defines in his or her own words the terms operations management, operational efficiency, operational effectiveness, operations strategy, and operational sustainability. Next critically discusses the process of operations management and how it is done within their organization, using the terms just defined. Find at

The following misstatements are included in the inventory and related records of Westbox Manufacturing Company: 1. An inventory item was priced at $12 each instead of at the correct cost of $12 per dozen. 2. In taking the physical inventory, the last shipments for the day were excluded from inventory and were not included as a sale until the subsequent year. 3. The clerk in charge of the perpetual inventory master file altered the quantity on an inventory tag to cover up the shortage of inventory caused by its theft during the year. 4. After the auditor left the premises, several inventory tags were lost and were not included in the final inventory summary. 5. When raw material acquisitions were recorded, the improper unit price was included in the perpetual inventory master file. Therefore, the inventory valuation was misstated because the physical inventory was priced by referring to the perpetual records. 6. During the physical count, several obsolete inventory items were included. 7. Because of a significant increase in volume during the current year and excellent control over manufacturing overhead costs, the manufacturing overhead rate applied to inventory was far greater than actual cost. Required 1. For each misstatement, state an internal control that should have prevented it from occurring. 2. For each misstatement, state a substantive audit procedure that could be used to uncover it.

The following misstatements are included in the inventory and related records of Westbox Manufacturing Company: 1. An inventory item was priced at $12 each instead of at the correct cost of $12 per dozen. 2. In taking the physical inventory, the last shipments for the day were excluded from inventory and were not inclu

minimize total inventory cost

The need of a company is 16000 units/year, demand is constant throughout the year, ordering cost is $25 per order, and the holding cost is 20% per unit. These suppliers below are offering discount. So which of the two suppliers should be selected to minimize total inventory cost, and what would be the inventory cost? supplier