Reference no: EM132387346

Assignment - Solve the case study using TPS system.

Question - In 1988, Albert Bent opened a small fruit and vegetable market in Ringwood Victoria. Originally, Albert sold only produce grown on his family farm and orchard. As the market's popularity grew, however, he added bread, canned goods, fresh meats, and a limited supply of frozen goods. Today Albert's Market is a full-range farmers' market with a strong local customer base.

Albert's market currently has 36 employees. These include sales staff, shelf stockers, shift supervisors, and administrative staff. Recently Albert has noticed a decline in profits and sales, while his purchases of products for resale have continued to rise. Although the business does not prepare audited financial statements, Albert has commissioned your accounting firm to assess his company's sales procedures and internal controls. Albert's Market expenditure cycle procedures are described below.

The expenditure cycle begins in the warehouse adjacent to the market where Albert's keeps its inventory of non-perishable goods such as canned goods and paper products. The company also maintains a one-day inventory of produce and other perishable products in the warehouse so clerks can quickly restock the shelves when necessary. At close of business each evening, the warehouse clerk reviews the market shelves for items that need to be replenished. The clerk restocks the shelves and adjusts the digital stock records accordingly from the warehouse computer. At this time, the clerk takes note of what needs to be reordered from the suppliers and prints purchase orders from the computer.

Depending upon the nature of the product and urgency of the need, the clerk either mails the purchase order to the supplier or orders by phone. Phone orders are followed up by e-mailing the purchase order to the supplier. When the goods arrive from the vendor, the warehouse clerk reviews the packing slip. restocks the warehouse shelves, and updates the stock records from the computer. At the end of the day, the clerk prepares a hard-copy purchases summary from the computer and sends it to the treasury clerk for posting to general ledger.

The vendors invoice is sent to the accounting clerk. She examines it for correctness and files it in a temporary file until it is due to be paid. The clerk reviews the temporary file daily looking for invoices to be paid. Using the accounting department computer, the clerk prints a check and records it in the digital check register. She then files the invoice and mails the check to the supplier. At the end of the day, she prints a hard copy journal voucher from the computer, which summarises the day's cash disbursements, and sends it to the treasury clerk for posting to the general ledger. Using the department computer, the treasury clerk posts the journal voucher and purchases summary information to the appropriate general ledger accounts.

Attachment:- Assignment File.rar