Accounting Information Systems 7th Edition by Cynthia Heagy,Constance Lehmann

Exercise 7

FasComm, Inc., manufactures high-performance communication chips for a modem manufacturer. Jill Roberts, the production manager, was "called on the carpet" this morning by Ray Ashbume, the plant superintendent, and asked to explain the following report that both Jill and Ray received upon arriving at work on Tuesday, March 16:
PRODUCTION COST REPORT
Week Ending March 12

Jill uses the cost report to judge the performance of her employees for the prior week, and Ray uses it to monitor overall costs. The purchasing department is responsible for the cost of material purchases, and Jill has no control over the overhead incurred. Jill immediately saw that the spoilage was far above the expected 5-percent rate. After spending from 8 to 10 A.M. on Tuesday investigating, she discovered that a new machine (one of five in use) that had been installed the preceding Tuesday was not calibrated correctly and was responsible for most of the defective output. It was recalibrated around noon, and the Tuesday afternoon production by that machine appeared to result in a normal yield of good chips.
Required:
Assuming that the above report is the only one received by Jill and Ray, what suggestions do you have to improve reporting? Be specific, sketching the report. Indicate the frequency of the report and to whom it should be directed.