Académique Documents
Professionnel Documents
Culture Documents
Labor
2
2-1
Classification of Materials
2-2
PURCHASE OF MATERIAL
2.
3.
PURCHASE REQUISITION
PURCHASE ORDER
RECEIPT & INSPECTION OF MATERIAL
STOCK LEDGER
BIN CARD
MATERIAL REQUISITION NOTE
MATERIAL RETURNED TO STORES
EOQ
SAFETY STOCK
2-4
Authorized
Signature
110 gal.
An authorized person
from the production
department initiates a
purchase of materials
by
completing
a
purchase requisition
form.
Signature:
COMPREHENSIVE LIST OF
MATERIALS
WITH
SPECIFICATIONS, MATERIAL
CODES & QUANTITY OF
EACH MATERIAL REQD FOR
PARTICULAR JOB, PROCESS
OR PRODUCTION UNIT
Will E. Delite
Purchase Order
A purchase order is used to order materials.
Legal
contract
Usually sent
through established
sources of supply
SINGLE TENDER
OPEN TENDER
GLOBAL TENDER
COMPARITIVE
ST
PREPARED
FOR
QUOTES RECVD.
LOWEST
PRICE
GETS ORDER AFTER
EVALUATION OF
SUPPLIER LIKE
PRICE QUOTED
DELIVERY TERM
QTY DISCOUNT
PAYMT TERM
DELIVERY MODE
PAST RECORD
GOODWILL
FINCL ANALYSIS
PO #:
Vendor:
Address:
Phone:
Purchase Requisition #:
1001
06059702
Quantity
110 gal.
Total
SIX COPIES
PREPARED
Description
Cost
Cost
1.SUPPLIER
Polyester
Resin TO PLACE ORDER 6.00
660.00
2.A/CG DEPT (TO SET UP FILE)
3.A/C PAYABLE (FUTURE PAYMT)
4.RECVG DEPT (CHECKING DELIVERY)
5.PURCHSG DEPT (TO FILE OF ALL
PURCHASE ORDERS ISSUED)
6.DEPT ORIGINATING PURCHASE
REQUISITION
RECEIVING REPORT
ALSO CALLED GOODS RECEIVED NOTE (GRN) FORM BASIS
OF ENTRY
Prepared when the ordered materials are received. TO STORES
Record additions to the Materials Inventory account.
REPORT
PREPARED &
INSPECTION
DONE BY
RECEIVING DEPTT
Purchase Order #:
COMPARED
WITH PACKING
SLIP OR DELIVERY
ADVICE GIVEN
BY SUPPLIER OR
BY PURCHASE
ORDER
LEDGER
FOR PAYMENT
ANOTHER COPY PASSED TO STORES ALONG WITH GOODS
INDIRECT TAXES
SALES TAX
CUSTOM DUTY
EXCISE DUTY
DEPENDS ON
RETURNABLE CONTAINERS
DIFF BETWEEN THE CHARGE FOR RETURNABLE CONTAINERS & THE AMT
REFUNDED WHEN CONTAINER IS RETURNED, SHOULD BE ADDED TO ARRIVE
AT MATERIAL COST
PURCHASES
3000 KG
LESS: SHORTAGE (ABNORMAL) BREAKAGE 200
ACTUAL RECEIPT AT STORES
2800
LESS: NORMAL DETORAITION (5% PROV)
140
NET QUANTITY AV FOR ISSUE
2660
EXAMPLE
PARTICULARS
AMT (Rs)
CPU
48 DRUMS @ RS 10
480.00
0.40
19,680.0016.40
SALES TAX (10% ON RAW MATRL COST (19,200) 1,920.00 1.60
(5% ON DRUMS) (5% ON Rs 480)*
24.00
0.02
NET INVOICE VALUE
21,624.0018.02
TOTAL FREIGHT PAID IS Rs 240
240.00 0.20
INSURANCE (2.5% ON NET INVOICE(21624)
540.60 0.45
22,404.60 18.67
CREDIT ON RETURN OF CONTAINERS (384.00)
(0.32)
(8X48)
22,020.60 18.35
STORES OVRHD
23,121.63
(@ Rs
19.27
*Assumed that sales tax benefits not passed to buyer back from Vendor
WASTE (NORMAL)
WASTE (NORMAL)
Rs 9 x 1,000 kg
= Rs 10 per Kg
WASTE (ABNORMAL)
LOSS ON ABNORMAL WASTAGE (AVOIDABLE)
PILFERAGE, DEFECTIVE STORAGE, CARELESS HANDLING
DEFECTIVE WORKMANSHIP, OBSOLESCENCE DUE TO IRREGULAR
ISSUES
NOT INCLUDED IN COSTING
CONSIDERED AS NON MANUFACTURING LOSS
DIRECTLY TRANSFERRED TO COSTING P/L A/CS
CALCULATE
TOTAL COST
34400
1400
68936.17
=
3063.83
SCRAP
IF ITS VALUE IS SIGNIFICANT BUT NOT IDENTIFIABLE WITH JOB
SPOILAGE
IF NORMAL & INHERENT IN PROCESS OR OPEARTION
COST ABSORBED BY CHARGING EITHER TO SPECIFIC
PRODUCTION ORDER OR TO PRODUCT OVERHEAD
IF ABNORMAL
CHARGED TO COSTING P/L A/C
IF SPOILT UNITS REUSED AS RAW MATL IN SAME PROCESS,
NO SEPARATE A/CG TREATMENT REQD
IF SPOILAGE USED FOR ANY OTHER PROCESS/JOB PROPER
CREDIT GIVEN TO RELAVNT PROCESS/JOB A/C
DIRECT LABOUR
IDENTIFIED WITH PARTICULAR JOB OR
PROCESS
CHARGED DIRECTLY TO PRODUCT
Debited to WIP
INDIRECT LABOUR
OTHER THAN DIRECT LABOUR
CHARGED TO FACTORY OVHEAD
EQUALLY SUPPORT PRODUCTION ACTIVITIES
COST OF LABOUR
MONETARY BENEFIT (PAYABLE IMMEDIATELY)
WAGES
SLARIES
DONE BY
LABOUR
COST A/CG
DEPARTMT
EPF
GRATUITY
DONE BY
PAYROLL
DEPARTMT
COST OF LABOUR
NON MONETARY BENEFIT (FRINGE BENEFITS)
FREE/SUBSIDISED FOOD
IDLE TIME
OVER TIME
NORMAL
ABNORMAL
STRIKES
LOCKOUTS
FIRE, FLOOD
POWER FAILURE
BREAK DOWN OF MACHINE
BOTTLENECK IN PRODUCTION
IF NORMAL
IF ABNORMAL
AUTHORISATION
ATTENDENCE CARD
TIME TICKET REPORT OF O.T. WORKER
AUTHORISATION BY E.D. OF DEPARTMENT
CAUSES
CAUSES
DR
CAUSES
RUSH ORDERS
SAMPLE ORDERS PALCED ON SATURDAY AFTERNOON TO BE
DELIVERED ON MONDAY
OT NECESSITATED WITH ONE PARTICULAR ORDER
THAT ORDER SHOULD BE LOGICALLY CHARGED WITH FULL
LABOUR COST
NO OTHER ORDER RECEIVES BENEFIT OF OT WORKING
THUS NO PART OF OT CHARGED TO ANY OTHER JOB
WIP A/C
DR
TO GENERAL LEDGER ADJUTMENT A/C
TREATMENT
AS PART OF DIRECT LABOUR COST