Calzado Company produces leather shoes in batches. The shoes are produced in one plant located on 20 acres. The plant operates shift, five days per week. Each time a batch is produced, just in time suppliers deliver materials to the plant. When the materials arrive, a worker then makes an entry at a PC terminal near the point of delivery acknowledging receipt of the material. An accounts payable clerk reviews all deliveries at the end of each day and then prints and mails checks the same day materials are received. Prior to producing a batch, the equipment must be configured to reflect style and and size features. Once configured, the batch is produced passing through three operations: cutting, sewing and attaching buckles and other related parts such as heels. At the end of the production process, a sample of shoes is inspected to ensure the right level of quality.                 After inspection, the batch is divided into lots based on the customer orders for the shoes. The lots are packaged in boxes and then transferred to a staging area to await shipment. After a short wait (usually within two hours), the lots are loaded onto the trucks and delivered to customers (retailers).                 Within the same plant, the company also has a team of design engineers who respond to customer feedback on style and comfort issues. This department modifies existing designs, develops new shoe design, builds prototypes, and test markets the prototypes before releasing the design for full-scale production.   Required: Identify Calzado’s processes and their associated activities. Classify each activity within each process as unit level, batch level, product level, or facility level.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Calzado Company produces leather shoes in batches. The shoes are produced in one plant located on 20 acres. The plant operates shift, five days per week. Each time a batch is produced, just in time suppliers deliver materials to the plant. When the materials arrive, a worker then makes an entry at a PC terminal near the point of delivery acknowledging receipt of the material. An accounts payable clerk reviews all deliveries at the end of each day and then prints and mails checks the same day materials are received. Prior to producing a batch, the equipment must be configured to reflect style and and size features. Once configured, the batch is produced passing through three operations: cutting, sewing and attaching buckles and other related parts such as heels. At the end of the production process, a sample of shoes is inspected to ensure the right level of quality.

                After inspection, the batch is divided into lots based on the customer orders for the shoes. The lots are packaged in boxes and then transferred to a staging area to await shipment. After a short wait (usually within two hours), the lots are loaded onto the trucks and delivered to customers (retailers).

                Within the same plant, the company also has a team of design engineers who respond to customer feedback on style and comfort issues. This department modifies existing designs, develops new shoe design, builds prototypes, and test markets the prototypes before releasing the design for full-scale production.

 

Required:

  1. Identify Calzado’s processes and their associated activities.
  2. Classify each activity within each process as unit level, batch level, product level, or facility level.
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