waltz company manufactures music boxes seventy percent of its products are standard 540577

Documentation

Waltz Company manufactures music boxes. Seventy percent of its products are standard items produced in long production runs. The other 30 percent are special orders with specific requests for tunes. The latter cost from three to six times as much as the standard product because they require additional materials and labor.

Reza Seca, the controller, recently received a complaint memorandum from Iggy Paulo, the production supervisor, about the new network of source documents that has been added to the existing cost accounting system. The new documents include a purchase request, a purchase order, a receiving report, and a materials request. Paulo claims that the forms create extra work and interrupt the normal flow of production.

Prepare a written memorandum from Reza Seca to Iggy Paulo that fully explains the purpose of each type of document.