UNITY UNIVERSITY COLLEGE

SCHOOL OF DISTANCE AND CONTINUING EDUCATION

Worksheet for Accounting Information System (Acct 322)

Name________________________
Id. No_______________________
Department __________________
P.O.Box______________________
Region (Zone)_________________
Centre _______________________
Last date of submission __________________

This is a worksheet you are expected to do on your own. It carries 30 points. The
worksheet should be completed and mailed to the School of Distance and Continuing
Education for evaluation. Do not try to complete the worksheet until you have
covered all the readings in the course material.

Any question in the course, that you have not been able to understand, should be
stated on a separate sheet of paper and attached to this worksheet. Your tutor will
clarify them for you either by his/her comments on your worksheet or on the tutorial
programs.

After completing this worksheet, be certain to write your Name, Id.No and Address on the
first page. Only your Name and Id.No on the other pages. Also do not forget to leave enough
margin on the left side of your answer sheet for comments by your tutor.

Be sure that this worksheet has __3

__3__ pages including the cover page.

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 1. CZ Company is a beauty and barber supplies and equipment distributor servicing a
five-region area. Management generally has been pleased with the overall operations
of the company to date. However the present purchasing system has evolved through
practice rather than having been formally designed. Consequently it is inadequate and
needs to be redesigned.

A description of the present purchasing system is as follows. Whenever the quantity of an

item is low, the inventory supervisor phones the purchasing department with the item
description and quantity to be ordered. A purchase order is prepared in duplicate in a
purchasing department. The original is sent to the vendor, and a copy is retained in the
purchasing department filed in numerical order. When the shipment arrives, the inventory
supervisor sees that each item received is checked off on the packing slip that accompanies
the shipment. The packing slip is then forwarded to the accounts payable department. When
the invoice arrives, the packing slip is compared with invoice in the accounts payable
department. Once any differences between the packing slip and the invoice are reconciled, a
check is drawn for the appropriate amount and is mailed to the vendor with a copy of the
invoice. The packing slip is attached to the invoice and filed alphabetically in the paid invoice
file.

Required
CZ Company intends to redesign its purchasing system from point in time when an item needs
to be ordered until payment is made. The system should be designed to insure that all of the
proper controls are incorporated in to the system.
A) Identify the internally and externally generated documents that would be required to
satisfy the minimum requirements of a basic system and indicate the number of copies
of each document that would be needed.
B) Explain how all of these documents should inter relate and flow among CZs various
departments, including the final destination or file for each copy. (Use data flow
diagram DFD)
2. CZ Corporation is a major vendor of office supplies, furniture and equipment. CZ's
sales representatives call on customers to take orders. The sales representatives write

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 up the orders and turn them in to a sales order processing (SOP) clerk at the regional
center. If the ordered items are in stock, the SOP clerk prepares a picking slip (stock
copy) and a packing list for each order. If any of the ordered items are out of stock,
the SOP clerk completes an Out Of Stock Notice form, which notes the name of the
customer requiring the items and forwards it to Purchasing. A Purchasing clerk then
completes a purchase order, which is mailed to a supplier. The SOP clerk notes back-
ordered items on the customer's order and forwards a copy of the annotated customer
order to Accounts Receivable (A/R) where an A/R clerk prepares an invoice and sends
it to the customer. The SOP clerk also forwards a picking slip and packing list to the
Warehouse, where stock pickers fill the order, placing ordered items into boxes along
with the packing list. The boxed items and packing list are held for delivery, usually
via UPS.

Required
A). Draw a data flow diagram (DFD) for CZ Corporation. (Existing system)
B). Draw a DFD to satisfy the minimum requirements of a basic system

3. Explain the different ways controlling cash

4. Describe just in time (JIT) production system