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Jersey City Enterprises Jersey City Enterprises is a manufacturer of model train

ID: 2513160 • Letter: J

Question

Jersey City Enterprises Jersey City Enterprises is a manufacturer of model trains that sell under the name CF Toy Trains in toy stores and hobby shops throughout the United States, Europe and Latin America. The com- pany employs 210 people in its home office and sole manufacturing and storage facility, which are both located in Jersey City. New Jer sey The inventory storeroom is called the stores department, and it is managed by Henry Prayne. Both materials and finished goods are maintained in this area, as well as the supporting inventory rec ords. Henry performs a daily review of the items on hand by monitoring the inventory subsidiary ledger and determining whether additional materials are needed. If they are, Henry prepares a materials requi- sition form to submit to the production planning department. Henry is very friendly The production planning department is led by Roberta Berta" Alex. Upon receipt of a materials requisition form from Henry, Berta files the form. Berta's files contain not only the materials requisition forms received from Henry, but also sales forecasts received from the sales department. These files are monitored on a daily basis; if there is a match between the needs identified by both stores and sales, a bill of materials and a routing slip are prepared and for- warded to the production room. If inventory quantities for support- ing materials are sufficient, a production schedule is prepared and forwarded to the production room. If materials are needed to support production of the items, a purchase requisition is prepared and for- warded to the purchasing and stores department Berta Alex is also the supervisor of the production room. Once new documents are obtained from the production planning department the bill of materials and routing slip are sent to stores, where Henry retrieves the necessary materials. He makes a copy of the bill of ma- terials and routing slips and then returns these documents to the pro- duction room, along with the requested materials. At the end of the day, Henry updates the inventory subsidiary ledger and prepares a journal voucher summarizing the day's use of materials. eens 1-3 of6

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