You produce 100 total units of finished goods.
The amount of material used to produce the goods is the equivalent amount of material needed to produce 105 finished goods.
The company must track variances in material compared to the original estimated amount.
You must only use one picking list journal for each production order.
You need to post a picking list that accounts for the material required to produce 105 finished goods.
What should you do?
Click on the arrows to vote for the correct answer
A. B. C. D.D.
The question involves a scenario where a company needs to produce 100 units of finished goods but the amount of material required to produce 100 units is equivalent to the amount of material required to produce 105 units. Additionally, the company must track variances in material compared to the original estimated amount and only use one picking list journal for each production order.
To post a picking list that accounts for the material required to produce 105 finished goods, we need to consider the options provided in the answers.
Option A suggests posting a picking list for 100 to account for the originally estimated amount and an additional picking list to account for the equivalent amount of material to produce 5 finished goods. However, this would result in two picking lists, which goes against the requirement of using only one picking list journal for each production order.
Option B suggests reporting as finished five additional units into the good quantity and posting a picking list for only the originally estimated amount. This option does not account for the additional material required to produce 105 units and does not meet the requirement of tracking variances in material compared to the original estimated amount.
Option C suggests editing the estimated amount for each line in the Bill of Materials (BOM) production details to equal 105 units of raw material. While this would account for the material required to produce 105 units, it does not allow for tracking variances in material compared to the original estimated amount.
Option D suggests selecting the estimated consumption option when creating the lines for a picking list and overriding the consumption field with the actual amount to be consumed. This option allows for tracking variances in material compared to the original estimated amount and accounts for the additional material required to produce 105 units. Therefore, option D is the correct answer.
In summary, to post a picking list that accounts for the material required to produce 105 finished goods while tracking variances in material compared to the original estimated amount and using only one picking list journal for each production order, we should select the estimated consumption option and override the consumption field with the actual amount to be consumed when creating the lines for the picking list.