Information sheet 4,1-1

PERFORM RECORDS KEEPING

Learning objectives:
Learning Objectives:
After reading this INFORMATION SHEET you are expected to:
1. identify the different farm inputs;
2. carrying out inventory of farm inputs required in farm plan; and,
3. consider farm inputs in farm production planning
4.knowledge about the operation of the business
5. keeping track of money owed to the business

-CARRY OUT INVENTORY ACTIVITIES

what is Inventory
Inventory is the accounting of items, component parts and raw
materials that a company either uses in production or sells. As a
business leader, you practice inventory management in order to ensure
that you have enough stock on hand and to identify when there’s a
shortage.

Although small-business inventories are less extensive than those of

larger businesses, the inventory activities each performs are often quite
similar. Warehouse organization, receiving, storage and control
activities are just as important in a small business as in a large
corporation. An activities list describing the wide variety of tasks
inventory personnel routinely complete can be helpful in creating job
descriptions, responsibilities assignments and annual performance
reviews. Creating the components of a financial statement

-MAINTAIN PRODUCTION RECORD

Production records
The main reasons for production records are to ensure that quality
assurance procedures are in place and operating satisfactorily and to
record the use of ingredients and amounts of stock for use in financial
accounting. When raw materials are processed, each batch should be
recorded in an Incoming Materials. The same layout can be used for
recording incoming batches of ingredients and packaging materials,
some of which also require inspection on arrival Records should also be
kept of the amount and type of raw materials and ingredients that are
used and the important processing conditions drying times, heating
times and temperatures etc.) to ensure that operators mix together the
same ingredients in every batch and process them in the same way
each time.
Each batch of food should be given a Batch Number which is recorded
in stock control books, processing logbooks and product sales records.
The batch numbers should be correlated with the product code
numbers that are printed on labels or outer cartons. This allows the
processor to trace any subsequent faults in a batch of product back to
the process or to the raw materials.

PREPARE FINANCIAL RECORDS

Financial statements, though often feared as a very intimidating portion

of small business accounting, are just a matter of putting the trial
balance amounts onto properly formatted statements. Learn how to
prepare these documents you'll need for shareholders, potential
financiers and your own insight.
After you have prepared your adjusting entries in the general journal,
posted the general journal totals to the general ledger, and footed the
general ledger accounts, you are ready to prepare financial statements.
Like most of the accounting tasks we've reviewed, your accounting
software can alleviate much of the legwork.
If all adjusting entries have been made, and a trial balance done,
preparing financial statements is really just a matter of putting the trial
balance amounts onto properly formatted statements.

Self check 4.1-1

Direction:Read the questions carefully

Question 1. Do You Know When Should A Physical Inventory

Be Taken?
Question 2. Explain Can A Computer Help In Forecasting
Future Demand?
Question 3. Do You Know What Does Eoq Stand For?
Question 4. Tell Me Can Forecasting Help In Controlling
Inventory?
Question 5. Tell Me What Is Forecasting?
Question 6. What Is Raw Material?
Question 7. Do You Know What Is A Order Point?
Question 8. Do You Know What Is Demand?
Question 9. Tell Me What Is An Order Quantity?
Question 10. Tell Me What Types Of Forecasting Can I Do?
ANSWER KEYS:
1. A inventory should be taken at least once a year. If items are
perishable, seasonal or highly demanded a inventory should be
taken more often.
2. Yes, In the market today there are many computer software
packages that can compute forecasted demand for goods held
in inventory.
3. EOQ stands for Economic Order Quantity.
4. Yes, through the use of forecasts inventory levels can be set
to meet the demands while keeping levels as low as possible.
5. Forecasting is the process of estimating the future demand of
a product.
6. Are those basic inputs that are converted into finished
product through the manufacturing process. Raw materials
inventories are those units which have been purchased and
stored for future productions.
7.A order point is a point in time at which a order is placed to
replenish goods in inventory.
8. Demand is the quantity that customers are willing to buy.
Demand can be found through forecasting and is needed to
find the EOQ level.
9.An order quantity is the amount of goods that an order
requests be shipped to the store.
10. There are two types of forecasting qualitative and
quantitative. Qualitative uses personal opinions to determine
forecasts. Quantitative uses numerical data and statistical
modeling to determine forecasts.