3 Production operations Documents Controls Maintain detailed records of

3 production operations documents controls maintain

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3) Production operations Documents: Controls: Maintain detailed records of disposal 4) Cost accounting Process costing, allocate overhead cost by activity-based-costing (b) Design a production order for 220 kg of TA-NN6. You may make assumptions on data that is not available.
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not expected to memorise the format but need to know the features. production order number., customer name, sales order number, quantity gives u expectation that this is the amount u are supposed to get after the production process. date of completion. rush order or not (priority) signature, operation code tell u that process. work station number may be impt cos u may need to trace at which part of the process it is. (c) Name the most critical weaknesses in GCPL’s management of (i) fixed assets, (ii) raw materials and (iii) cash, and the resulting consequences. What can GCPL do to enhance internal controls? i) fixed assets no proper disposal procedures must have proper accounting. follow full procedures Weaknesses Consequences Internal controls Five fully depreciated trucks, which were deemed unsuitable for Golam’s use, were given to Mr. Newar for disposal. Maintain detailed record of disposal and ensure that the trucks are disposed off appriopriately. The state-of-the-art processing equipment for TA-NN6, which can produce up to 2 tons of the compound per month, was quickly flown in from Germany, and fitted within days. The TA-NN6 equipment is in-built with its own solar-panel and power generator device, but Golam is unable to find any stable and reliable power source for basic lighting and computing on remote, poverty-stricken Nukufafa, not at least until a power station is constructed in 2 years’ time. ii) raw materials
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no segregation of duties between purchaser and warehouse. pilferage of raw materials. apoint a warehouse personnel to track inventories no proper disposal of by-products Weaknesses Consequences Internal controls Local fishermen, however, are rumoured to be unhappy with GCPL and some are said to be throwing back into the sea any T-fish caught accidentally by their nets iii) cash CCTV not applicable as may not have power Weaknesses Consequences Internal controls No bank facility Consider added security measures to make it harder for ppl to steal cash. Keep the safe in a cupboard and the cupboard has lock and the cupboard is in a locked room.. No segregation of duties: Purchasing handles cash Appoint a separate person to make cash payments. periodic check on market price. Fishermen sign how much they paid. Every week, Mr Newar estimates the working capital needs of the purchasing post and passes the relevant amount in cash to the two staff. Improper usage on funding Accountant appointed to ensure compliance with procedures Do cash count Budgeting as a control measure
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Related to misuse of cash Mr Newar is seen driving an expensive car around the island during the weekends. He is now also known locally as a trader in old trucks, shark fins (to Chinese merchants in Johannesburg) as well as organic waste products for recycling as fertilizers. Purchasing post cum warehouse
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