Crystal Bay Hospital's central supply tracks sterile items using a batch code system. When opening count shows 240 items, used items logged as 185, damaged items recorded as 15, but closing count reveals 25 items, what is the unaccounted variance?
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Crystal Bay: what us the unaccounted variance?


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- The procurement process for Omni Wholesale Company includes a series of activities that transforms a materials requisition into a vendor check. The process begins with a request for materials. The requesting department prepares and sends a materials request form to the Purchasing Department. The Purchasing Department then places a request for a quote to vendors. Vendors prepare bids in response to the request for a quote. A vendor is selected based on the lowest bid. A purchase order to the low-bid vendor is prepared. The vendor delivers the materials to the company, whereupon a receiving ticket is prepared. Payment to the vendor is authorized if the materials request form, receiving ticket, and vendor invoice are in agreement. These three documents fail to agree 40% of the time, initiating effort to reconcile the differences. Once the three documents agree, a check is issued. The process can be diagrammed as follows: An activity analysis indicated the following activity costs with…A production line operation is designed to fill cartons with laundry detergent to a mean weight of 32 ounces. A sample of cartons is periodically selected and weighed to determine whether underfilling or overfilling is occurring. If the sample data lead to a conclusion of underfilling or overfilling, the production line will be shut down and adjusted to obtain proper filling. a. Formulate the null and alternative hypotheses that will help in deciding whether to shut down and adjust the production line. b. Comment on the conclusion and the decision when H0 cannot be rejected. c. Comment on the conclusion and the decision when H0 can be rejected.Case StudyCarosel Limited is a specialty motor vehicle parts supplier, procuring parts from a largenumber of suppliers. As part of the interim audit work four weeks prior to the companyyear’s end, you are testing the procurement/purchases systems, attending the inventory countand examining the sales and cash receipts.Purchasing/Procurement System When the quantity of a specific part falls below re-order level, an e-mail is sent to theprocurement department detailing the part required and the quantity to order. Partsinventory is monitored by the store’s manager with a copy of the e-mail filed on thestore manager's computer. Procurement department staff check the e-mail, allocate the order to an authorisedsupplier and send the order to that supplier using Electronic Data Interchange (EDI).The order is identified by a unique order number with a copy of the EDI order filed inthe order database by the computer system. When goods are received at Carosel, the stores clerk confirms that the…
- SYSTEM DOCUMENTATION-EXPENDITURE CYCLE (MANUAL AND COMPUTER PROCEDURES) The following describes the expenditure cycle for a hypothetical company. The company has a centralized computer system with terminals located in various departments. The terminals are networked to a computer application, and digital accounting records are hosted on a server in the data processing department. Each day, the computer in the data processing center scans the inventory records looking for items that must be replenished. For each item below its reorder point, the system creates a digital purchase order and prints two hard copies. A technician in the data center sends the purchase orders to the purchasing department clerk. Upon receipt of the purchase orders, the purchasing clerk reviews and signs them. He sends Copy 1 to the supplier and files Copy 2 in the purchasing department. A few days later, the supplier ships the order and the goods arrive at the receiving department. The receiving clerk reviews…K Cannon, Inc., is a manufacturer of portable CD players. The company purchases raw materials such as plastics and computer chips for its conversion cycle. The following describes K Cannon’s purchases and payments procedures. John, the purchasing department clerk, monitors raw materials inventory levels and prepares a purchase requisition when purchases are necessary. These are sent to the purchasing agent, who prepares six copies of a purchase order. Two purchase orders are sent directly to the vendor. One is placed in an open purchase order file in the purchasing department, and one is used to post to the purchases journal. Each week the purchasing department clerk prepares a journal voucher from the purchases journal and sends it to the general ledger department for posting. The AP and the receiving departments also each receive a copy of the purchase order, which they file temporarily. Upon receiving the raw materials, the receiving department clerk creates five copies of the…Carosel Limited is a specialty motor vehicle parts supplier, procuring parts from a large number of suppliers. As part of the interim audit work four weeks prior to the company year’s end, you are testing the procurement/purchases systems, attending the inventory count and examining the sales and cash receipts. Purchasing/Procurement System When the quantity of a specific part falls below re-order level, an e-mail is sent to the procurement department detailing the part required and the quantity to order. Parts inventory is monitored by the store’s manager with a copy of the e-mail filed on the store manager's computer. Procurement department staff check the e-mail, allocate the order to an authorised supplier and send the order to that supplier using Electronic Data Interchange (EDI). The order is identified by a unique order number with a copy of the EDI order filed in the order database by the computer system. When goods are received at Carosel, the stores clerk confirms that…
- Carosel Limited is a specialty motor vehicle parts supplier, procuring parts from a large number of suppliers. As part of the interim audit work four weeks prior to the company year’s end, you are testing the procurement/purchases systems, attending the inventory count and examining the sales and cash receipts. Purchasing/Procurement System When the quantity of a specific part falls below re-order level, an e-mail is sent to the procurement department detailing the part required and the quantity to order. Parts inventory is monitored by the store’s manager with a copy of the e-mail filed on the store manager's computer. Procurement department staff check the e-mail, allocate the order to an authorised supplier and send the order to that supplier using Electronic Data Interchange (EDI). The order is identified by a unique order number with a copy of the EDI order filed in the order database by the computer system. When goods are received at Carosel, the stores clerk confirms that…Carosel Limited is a specialty motor vehicle parts supplier, procuring parts from a large number of suppliers. As part of the interim audit work four weeks prior to the company year’s end, you are testing the procurement/purchases systems, attending the inventory count and examining the sales and cash receipts. Purchasing/Procurement System When the quantity of a specific part falls below re-order level, an e-mail is sent to the procurement department detailing the part required and the quantity to order. Parts inventory is monitored by the store’s manager with a copy of the e-mail filed on the store manager's computer. Procurement department staff check the e-mail, allocate the order to an authorised supplier and send the order to that supplier using Electronic Data Interchange (EDI). The order is identified by a unique order number with a copy of the EDI order filed in the order database by the computer system. When goods are received at Carosel, the stores clerk confirms that…Pinkton Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours Move time 11.5 Wait time 35.2 Queue time 12.2 Process time 0.8 Inspection time 0.3 The delivery cycle time was:
- Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 13.6 Process time 2.7 Inspection time 0.3 Move time 3.3 Queue time 7.0 The delivery cycle time was:Input Controls and Data Processing You have been hired by a catalog company to computerize its sales order entry forms. Approximately 60 percent of all orders are received over the telephone, with the remainder either mailed or faxed in. The company wants the phone orders to be input as they are received. The mail and fax orders can be batched together in groups of fifty and submitted for data entry as they become ready. The following information is collected for each order: Customer number (if a customer does not have one, one needs to be assigned) Customer name Address Payment method (credit card or money order) Credit card number and expiration date (if necessary) Items ordered and quantity Unit pricePareto chart and cost of quality report for a service company The administrator of Liberty Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Instructions 1. Prepare a Pareto chart of the ER activities. 2. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. 3. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. 4. Determine the percentages of the total ER costs that are value-added and non-value-added. 5. Interpret the information.











