ACCT 3122 Chapter : Chapter 10
Document Summary
Items are produced, inspected, transferred to fg inventory, and sent to shipping. A sales order or sales forecast causes the creation of production orders, which specify items that should be produced. Basic production requirements are provided by the bill-of-materials and the master operations list. Resources available for production are communicated to the production planning function through inventory status reports & factor availability. Bill-of-materials lists the raw materials necessary to produce a product. Master operations list identifies and specifies the sequencing of all labor operations and/or machine operations necessary to produce a product reports. Inventory status reports reports that detail the resources available in inventory. Factor availability reports reports that communicate the availability of labor and machine resources. Production order document that authorizes the production departments to make certain products (production order = jobs) Materials requisitions documents that authorize the release of raw materials to the productions departments. Production receives materials from stores and produces goods.
