Professional Documents
Culture Documents
An Undergraduate Thesis
Lucena City
Accounting
by
Kathlene A. Jao
Acknowledgement
This research would not be possible without the effort, enthusiasm, and perseverance of
its members. Thus, this accomplishment would not be possible if the researchers was not granted
of their desired support. The researchers would like to express their sincerest gratitude to the
To Catherine D. Limjuco CPA, MBA., College Dean, thank you for all the encouragement,
To Carmen A. Aldovino, the research adviser, for guiding us and sharing with us your
To Jim Acuzar, Ralyn Bermudez, Love Guerra, Maria Lucille Pedegloria, Ashley
Pangilinan, Carlos Jeyron Remiendo and Grace Meg Anne Villaluz, our professors and consultants,
for answering our questions and giving suggestions to finish this study.
To Mr. John A. Moreno, Owner of King Louis Japan Surplus, for warmly accommodating
To the faculty of Business and Accountancy for giving us free time to finish our study.
To the researcher’s parents and siblings, for their constant financial and moral support
given.
To friends particularly our classmates, thank you for the never-ending motivation in
To all the concerned persons, who inspired the researchers in achieving this research study, thank
To our Almighty God for guiding us throughout this whole research. His guidance helped
THE RESEARCHERS
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MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final Report
An Autonomous University Page No.: Page 4 of 73
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Dedication
To my family,
To my groupmates,
To my wuffenloaf...
-Kath
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MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final Report
An Autonomous University Page No.: Page 5 of 73
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Dedication
I dedicate this to my Parents and relatives who love and endlessly supporting me. Papa and
Mama thank you for supporting and giving me the strength that I need to face the daily trials in
To my thesis mates, Rd, Kyle, Kath and Irish, thank you for such an unforgettable time of our
college days. For all the fun and desperate times of my life that makes me realize the important
of true friends.
I also want to thank all the professor who taught me everything they know for me to be ready in
the real world after graduation and for guiding me to be in the right path of life.
And last but not the least, to the God Almighty, thank you for giving me such a wonderful
Dedication
I couldn’t have done this research work without Your aid and guidance.
I thank and glorify You, oh Heavenly Father, that you have always been there for me, to help
Who sends their utmost support and love to finish my study I dedicate this thesis to you.
To my fellow friends,
May you find your worth not on the things that this world can offer
But may you find and seek that genuine kind of happiness that could only be found in
Dedication
I dedicate this study to my family, especially to my mother who never gave up on me and
To my sisters of KAPPA DELTA OMEGA Sorority, thank you encouraging and trusting me.
To my friends, UNDB, my MCC Family and to my special someone thank you for supporting me
always.
And to my research buddies: Kath, Pj, Kyle and Rd, thank you. Kaya natin to.
-Ayish
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MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final Report
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Table of Contents
Page No.
Title Page 1
Approval Sheet 2
Acknowledgement 3
Dedication 5
Table of Contents 9
Abstract 10
Background 12
Conceptual Framework 13
Literature Survey 14
Definition of terms 22
Description Method 24
Research Design 25
Research Instrument 25
Business Characteristics 28
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MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final Report
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SWOT Analysis 47
Conclusions 48
Recommendations 4*
Appendices 52
Guide Questions 52
Series of Interview 53
Business Forms 57
Photo Exhibit 61
References 63
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RETAILER
Abstract
This study aims to enhance the current inventory management system of a Japan surplus retailer
in Lucena City. Specifically, the researcher’s main focus of study is to assess the company’s
inventory management system by identifying the current practices and as well as the current issues
and challenges brought up by the nature of the business. The researchers will gather information
by using these four parameters namely by the: recording, classifying, measuring and dispatching
of the inventory. The researchers used these data gathering techniques such as observation, series
of interview and visitation for the collection of data. The respondents are composed of the two
employees and the owner. The researchers are used a validated questionnaire fit for the collection
of data in accordance with the objectives of this study. A SWOT analysis is performed for the
determination of some of the issues and challenges encountered by the company. The study is only
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MANUEL S. ENVERGA UNIVERSITY FOUNDATION
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limited to the management itself. Thus, through the use of the data gathering techniques the
researchers gathered enough data to finish the study. The main output of this study to provide the
management an enhanced inventory management system equipped with the step by step
procedures.
Background
Japan surplus refers to a wide variety of goods, from the household commodities
such as kitchen wares, furniture and other decorative items, to heavy duty machineries.
Most stores implement a periodic inventory system in which inventory are recorded and
classified daily. Thus, Japanese surplus uses a weighted average system wherein items of
the same kind are measured together to determine the inventory cost. Market for Japan
surplus here in Lucena City became a trend amongst entrepreneurs which creates a
competition within the area. Though applying a periodic inventory system is common to
stores nowadays, using this method can arise some problems concerning it. According to
Lohrey (n.d.), the most common problems amongst periodic system users are the
King Louis Japan Surplus is one of the sole proprietorship retailing business that
is currently operating in Lucena City. The business sells a variety of commodities that
were imported from Japan, Belgium, and Italy. It has been operating since it has been
established back in October 2013 and it has been presently maintained by two employees.
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business’ inventory, the frequent misplacement of items, and as well the problem
concerning with inventory classification and technique. This has led the researchers to
assess the current management inventory system of the business and propose an output to
1.1.Nature of business;
1.3.Inventory class;
2.1. Recording;
2.4. Dispatching;
3.1. Records;
3.4. Dispatching;
Theoretical Framework
reporting and compliance with applicable laws and regulations. In an effective internal
control system, the five components: control environment, risk assessment, control
components establish the foundation for sound internal control within the company and
This study will use this as a basis to obtain an understanding of the entity and its
environment including its internal control, to evaluate and assess the risks of material
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MANUEL S. ENVERGA UNIVERSITY FOUNDATION
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misstatements in the records. Inquiries of management and others within the entity,
Literature Survey
that are still at present work in procedure. In this manner inventory comprises of
raw materials, work in process, and completed merchandise. The definition given
by Banaag will serve as a way for the familiarization of the management for what
is in charge of ordering and receiving the receipt of merchandise: timing the order
placement and monitoring what has been requested, how much, and from whom.
moving them toxa quality review area, checking them, moving them over to main
storage, picking them for a request, gathering and bundling the request, and
transporting it. In addition to the fact that this process requires an expansive number
on hand is insured, you don't generally realize the amount you are probably going
to require at whichever schedule yet at the same time there is a need to fulfill
To maintain a strategic distance from the effect of cost inflation you should
Protestation. In the event that you purchase a bigger amount of a thing less much
of the time the ordering costs are not as much as purchasing in smaller amounts
again and again accordingly bringing down ordering costs. This lets the
total for the business to guarantee precision to compute the inventory regularly
and coordinate it against the records. Cycle tallying is a physical inventory taking
Inventory costs has a big role in business which the management need to
be mindful of. Inventory incorporates costs like money and space to maintain or
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purchase an inventory. Additionally, there are costs for labor to receive, check
quality, put away, retrieve, select, pack, ship and account for to keep inventory as
deteriorate, get harmed or be rendered obsolete, and stolen the business will be
considered responsible.
Inventory costs for the most part fall into ordering costs and holding costs.
Requesting, or procurement, costs come about paying little respect to the genuine
estimation of the merchandise. These costs incorporate the pay rates of those
In the most explicit issue, these costs ought to be taken in with thought
and will impact the inventory size. Holding costs incorporates the expenses for
storerooms, taking care of, protection, pilferage, breakage, out of date quality,
depreciation, taxes, and the opportunity cost of capital. Clearly, high holding costs
will in general support low inventory levels and regular replenishment. In setup or
production change costs you make every item extraordinary by acquiring the vital
materials, organizing required papers, properly charging time and materials, and
moving out the past load of material. Ordering costs allude to administrative and
incorporates each and every bit of information, for example, tallying things and
computing request amounts. Shortage cost is a request for what thing will be
anticipated until it is renewed or dropped. At the point when the interest isn't met
and the request is dropped, this is alluded to as a stock out. A backorder is the
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point at which the request is held and filled at a later date when the stock for the
thing is replenished.
Periodic and perpetual system are the two chief frameworks to decide
stock amounts close by. This definition will introduce two of the systems that the
The periodic system requires a physical check of products available toward the
records and modifications are generally toward the finish of the period despite the
fact that it does not have planning and control benefits of the perpetual system.
for each thing of inventory. It is the most functional system for huge assembling
grievances. With this meaning, the management will be familiar with the
bought merchandise are the first to be utilized or sold paying little heed to the real
inventory and cost of merchandise sold by figuring an average unit cost for all
strategy presumes that ending inventory comprises of all products accessible for
purchase.
given way to the automated world of bar codes and scanners. Indeed, even with
this innovation, manual inventory systems still hold key favorable circumstances
promote accountability and avoid deceit. Other than following laws and
precision and timeliness of financial reporting. This in turn, presents the definition
potential for data entry errors, which can prompt frustrated customers. Manual
review the item and guarantee everything is appropriately available for purchase.
owner can represent his inventory regardless of whether a tree takes out a nearby
transformer, cutting the power to the whole square. Manual inventory systems are
additionally increasingly hard to mess with in light of the fact that the products
management will be oblivious how or where items move which may prompt
lack an inventory balance which can end in lost profits and costs you can prevent.
It will also reduce employee productivity as recording can be done easily with a
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would find difficulties to operate. For example, bookkeepers use business sales
contract binding both of the parties. It sets forth the descriptions, quantities, prices,
and conditions, and identifies a specific seller. This defines the purchase order
An inventory sheet enables your small business to monitor goods you use
or sell. Each sheet records a single item and monitors the amount of the item is
coming into your business and what amount is going out. This familiarizes the
management with the inventory sheet that they will always use in the business.
of a shipment to show that they have gotten the product being sent and have claimed
it.It informs the insurance company that the delivery was a success, and the
customer now holds the actual policy. The viable date of the approach, and whether
inclusion has started may rely upon the kind of receipt a protection policyholder is
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provided with. This shows the purpose of a delivery receipt as they use it in the
business.
analyse and improve their internal control. The significance of Internal Control in
presence or the absence of the process decides the quality of output created in the
which means the organization does not know whether or when it will sell. Out of
date quality, over supply, defects, significant value decays, and similar issues can
this manner, bookkeepers assess stock and utilize lower of cost or net realizable
bookkeeping records at more prominent than its net realizable value (NRV), a
record from the recorded expense to the lower NRV would be made. Generally,
the Inventory record would be credited, and a Loss for Decline in NRV would be
the counterbalancing debit. This debit would be accounted for in the income
average cost of production to a given item, is most regularly utilized when stocks
are intertwined to the point that it ends up hard to allot a specific cost to an
individual good. This is as often as possible when the stocks being referred to are
indistinguishable from each other. Moreover, this strategy expects a store to sell
To utilize the weighted average model, one divides the expense of the
merchandise that are up for sale by the quantity of those units still on the shelf.
This estimation yields the weighted average cost per unit—a figure that would
then be able to be utilized to assign an expense to both ending inventory and cost
of goods sold.
strategic planning. SWOT analysis analyses interior and outer variables, just as
reasonable, fact based, information driven look at the qualities and shortcomings
also add accuracy, ability, data simplification and process recording. For entities
with constant flow of incoming and outgoing stock it is very important to have a
an entity must have these important elements regarding inventory which are:
physical count, inventory sheet to track all inventory activity, and employee
management.
The location names and labels of each product need to be well organized,
help employees, work faster, labels need to be easy to read and clearly state
which location they are referring to. All products should have well-defined
descriptions and unique item numbers, short and unmistakable. Well created and
are available, it will be much easier, faster and better organized to obtain a good
stock level count. Finally, in order to make the system efficient, the creation of
policies and the training of employees on the entire inventory system will help
and finances under control. Inventory management can help achieve inventory
tracking, where the system will help maintain inventory tracking and provide a
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system is the first step to organizing a small business inventory system. For each
item, the various information to be tracked is: product name, item number / code,
item short description, product class / category, cost, retail price, selling price,
size, vendor, supplier, reorder quantity and shipping details. In order to quickly
access provider contact information and payment terms, there is also a need to
Purchasing orders are the easiest way to manage inventory purchases, to track
method to receive inventory shipments, to ensure that boxes are received and
unpacked together, all received items are accurately counted and checked for
accuracy against purchase order. This could lead to stock shortages, backorders,
and ultimately losses if there is an error during order entry. In addition, the
inventory needs to be tagged and labeled to help track inventions closely and
speed up the checkout process. During the stock receipt process, a good time to
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label inventory is because it ensures that the task is not overlooked and prevents
unlabeled stock.
detail every order, including every item sold and the remaining inventory. You
will record orders by hand with a manual system, then adjust the inventory
manually for each item sold. This can be handled manually by a small operation
Physical counts can reduce inventory issues of all kinds. There are two
primary types of inventory counts that most companies use annual inventory
counts that count items for income tax purposes at the end of each year; and cycle
counts, which are periodic spot counts that can easily fit into everyday activities.
Even the best system and process can have faults. The first step to eliminate these
flaws is to investigate the count discrepancy where it can be an actual loss, such
well organized, clearly labeled and accessible for counting and inventory.(Krista
Fabregas, 2017)
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1. Owner
old inventory system. It will also give the management a better control over
2. Employees
them the responsibility to record the transactions. It will also help the
business.
3. Clients
The service provided by the company will be better, because of the new
system. With the new system it makes it faster and easier to search the item
needed by a customer. It can also make the process of knowing the product
is available. And because of this the customers or client will benefit from it.
4. Readers
It will serve as a reference for the readers, especially to those who will
conduct the same kind of study. It will also give the reader a better
business and open the mind on the importance of the designed inventory
5. Researchers
The study will help the researchers have further knowledge about inventory
addresses them with solutions. The researchers will fully visualize and know
system for the company that will generate a sound internal control over the
inventory for the long run. This study can be a basis for the further improvement
and step by step procedures in handling the inventory of the company. The
researchers also designed new business documents that will be introduced to the
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Target Beneficiaries
Target Beneficiaries
Japan Surplusxx
3. Future Researchersxx
Definition of Terms
Average Moving Method is an Inventory costing method used under a perpetual inventory
system whereby, after each acquisition, average unit cost is recomputed by adding the cost
of acquired units to the cost of units in inventory and dividing by the new total number of
units.
FIFO is an Inventory valuation assumes that the first goods purchased are the first to be
used or sold regardless of the actual timing of their use or sale. This method is most closely
Heterogeneous are products with attributes that are significantly different from each other,
Homogeneous are products that vie with each other in a market but which (from the
Import means good or service brought into one country from another. The word "import" is
derived from the word "port" since goods are often shipped via boat to foreign countries.
Along with exports, imports form the backbone of international trade. If the value of a
country's imports exceeds the value of its exports, the country has a negative balance of
trade.
Inventory is the term for the goods available for sale and raw materials used to produce
goods available for sale. Inventory represents one of the most important assets of a
business because the turnover of inventory represents one of the primary sources of
Inventory Costs includes the costs to order and hold inventory, as well as to administer
the related paperwork. This cost is examined by management as part of its evaluation
of how much inventory to keep on hand. This can result in changes in the order
fulfilment rate for customers, as well as variations in the production process flow. It
can be classified into three: Ordering costs, holding costs or Carrying costs, and
Administrative costs.
and processes and procedures that oversee the monitoring and maintenance of stocked
products, whether those products are company assets, raw materials and supplies, or
Periodic inventory is a system of inventory in which updates are made on a periodic basis.
In a periodic inventory system, no effort is made to keep up-to-date records of either the
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inventory or the cost of goods sold. Instead, these amounts are determined only
periodically - usually at the end of each year. This physical count determines the amount of
inventory appearing in the balance sheet. The cost of goods sold for the entire year then is
Perpetual inventory is a method of accounting for inventory that records the sale or
and enterprise asset management software. Perpetual inventory provides a highly detailed
view of changes in inventory with immediate reporting of the amount of inventory in stock,
Surplus Store is a shop that sells used items, or items previously purchased but unused,
and no longer needed. The items are often military, government or industrial excess.
of King Louise Japan Surplus Store which is located at Allarey St. Barangay 3,
Lucena City. The research is conducted from December 2018 to April 2019. The
methods used by the researchers for data collection are interviews and observation.
It is expected that not all information about the company or business can be
not all respondents are willing to participate as one of the key respondents of the
study. Due to limited experience and the short span of research on the system of the
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business, the researchers wouldn’t be able to grasp the situation. The study is
Description of Method
achieved without the practices, steps and techniques that have to be employed.
This study tries to come up with an efficient and accurate inventory management
system by the honing the researchers’ available resources with the least probable
cost. The researchers had come up with the following methodologies to be used in
Research Design
An initial observation to the store and inquiry to the owner was conducted
determine the current issues of the Japan Surplus Store. Furthermore, a series of
gain additional information of the current practice and assess the internal control
Research Instrument
developed by the researchers based from research materials, books, and other
periodicals. The instruments used by the researchers are validated by the adviser of
the research. Thus, the questionnaires will act as the source of the information.
business characteristics, which aims to determine the nature of the business, length
of operation. The second part will determine the current recording practices and
inventory, dispatching of inventory and lastly, thoughts of the employees about the
the entity’s current practices and establish a conclusion based from the findings,
primary and secondary sources by interviewing with key personnel in the stores
process was done to see the flow of goods in the conversion process. Material
handling and storage were also observed and so was the patrol/inspection
procedure. Record analysis of relevant data was obtained from the company’s
The researchers started gathering data for the study on the 28th of
November. The management was visited five times to collect all the information
needed for the study. The first interview and visitation the researchers conducted
check how things were going after a period of time. When the researchers were
near in collecting the entirety of the information they needed, a final interview
was organized to establish a conclusion for the study. The researchers first noticed
for items; they were all just randomly placed around the store waiting for a
customer to buy them. This could discourage future sales as it forces customers to
exert effort in finding products they would buy. Employees on the other hand
would also at times neglect their responsibilities like forgetting to record a sale
which leaves the management to guess whether items were stolen or sold.
probability sample that is selected based on the objective of the study. The
management as a whole.
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. The subject of the study was chosen due to their specific knowledge about
system of the business. The data regarding the respondents, business background,
and the records was under the consent of the management. In accordance with the
access, use, or loss. Furthermore, the collected information was necessary to reach
the level of having the optimal information needed for the objectives to be
fulfilled.
Conceptual Framework
The researchers had to know the business related profile and the present
inventory practices used by the company. The researchers will interview the
owner and employees and observe the operations of the business. It will undergo
evaluated, assessed and will be tested. After the process of which, the researchers
know the profile of the business and its current system to be able to come up with
This presents the data gathered from the series of interviews, observation
and visitation. Thus, this illustrates the current inventory system by the
management. In line with this, it also illustrates the problems that the researchers
encountered during the data gathering process as well as the solutions that are
Data Matrix
c. Inventory Class
of? Observation
a. Recording Vistitation
b. Classification of Inventory
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c. Measurement of Inventory
d. Dispatching
a. Recording Observation
d. Dispatching
Table 1
Data Matrix is a systematic way of ensuring data is well addressed during the
research. Above is the matrix in which the researchers used a guide in presenting the data
1. Business Characteristics
Surplus retail products for the masses. A merchandising store, this Japan
surplus retailer sells used items, items previously purchased but unused or
items that are no longer needed. The business also promotes and sells
consumers who are not able to go at the physical store. The business also
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The business currently has two employees. One of the employees is tasked
to issue receipts and safe guard the cash. The other one is responsible for
For six years, the business is getting bigger than it was, with this
the inventory class is getting bigger as it grows. The business currently has
two employees safeguarding the store. The owner only comes every
morning to check and open the store then leaves, in the afternoon the
owner goes back to check and collect the sales for that day.
Kitchenware, Display Items, Paintings and Sculptures. The big items like
pieces of furniture are composed of cabinets, shoe racks, coat racks, bed
frame, sofa sets, bedside tables, vanity table, study table, dinning set and
other unique pieces. The big items also holds the paintings, display items
and the scuptures. On the other hand, small items like kitchen ware are
in Lucena City and the main store is located in Allarey St. Barangay III,
Lucena City. The business ships their goods from the warehouse to the
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management system.
System
Realizable Value
Weighted Average,
Specific
Identification
Table 2
The table above shows the current practice of the business in terms of:
current practices of the business. As shown on the table the current practice of the
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which is one of the two offered recording systems. Thus, the following objectives
SWOT Analysis
Weakness
Unreliable Recording
Strengths
Prone to theft
Delivery Option
Employee Productivity
Loyal Customers
Inefficiency during pick- up
Tracking of Inventory
Threats
Brokerage
Opportunities
Loss of Items
Customer Efficiency
Customer unsatisfaction
Reliable Recording
over dispatching
The SWOT Analysis above shows that the business has its
own strengths and weakness that can be used for seizing every opportunity
to thrive and eradicating the threats. The SWOT analysis shows that the
business has a poor inventory management that can cause threats on the
inventoriables can cause the management to incur losses in which they can
3.1 Recording
the management to believe that the inventory items are still in the facility
but in fact it is already been sold. Cash balances are also affected by the
recorded.
3.4 Dispatching
1. Walk-In Transactions
dispatching process.
2. Online Transactions
3. Wholesale Transaction
The data gathered during the course of the study paved way for the
with the researcher’s knowledge about thte issues and challenges of the business.
The researchers made it into an opportunity to create and enhance new procedures
RECORDING
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control to safe guard assets against future theft and losses. Recording of inventory is a
major management tool utilized by companies and business owners to ensure efficient
operation. In figure 2, the old recording of inventory transaction will start with receiving
of goods, were it will be inspected by the employees if there are any defective item that
needed to return to the warehouse. The input, which were the goods received from the
warehouse, will be recorded to the inventory record sheet. All transactions recorded
would be summarized. The order to the supplier will be issued if there is still a need for
new goods.
Figure 3, the new recording of inventories starts with the receiving of goods
where they will be inspected if there are any defects. If there are any, the defective items
will be recorded in the return form before returning it back to the warehouse. This will
help the inventory management system to be more efficient and effective. If there are no
defective items received, the items will be recorded in the inventory sheet and to the
summary of transactions. The inventory level would be later checked if there is any need
to purchase. If the inventory level checked is low on supplies, a purchase order will be
Classifying
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organized manner. Figure 3 show the management’s first step is item acquisition wherein
the business receives products to sell. The items are then segregated in the second step so
that big and small items were separated from each other. It is then categorized for each
function in the third step as this was the management’s way of keeping the products in
order.
researchers would recommend a new one. In figure 4, the first step is the acquisition of
inventory for the management to sell new goods. It is then segregated into three classes
which are big small and defective in the second step. This helps a lot as it arranges the
products better by segregating the scrap from the ones in perfect condition. In step four,
defective items are prepared with a return form while big and small items in good
Measurement
For the management to make decisions, the inventory should be measured and
reported. According to Figure 5 illustrates that the first step in measurement is acquiring
goods to replenish inventory. With the management receiving goods, the business will
have new products to sell. To earn a profit, the business’ second step is adding a mark-up.
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For internal control, the entity’s third step is to estimate the value of the inventory as it
To solve the issues of the business’ previous way of measuring inventory, the
researchers came up with a new one. As stated in Figure 6, it starts by acquiring inventory
for the management to sell new products in the market. It is then followed by step two
which is inputting the received merchandise to the inventory sheet with an added mark
up. This step keeps track of the entity’s current inventory and creates a record for the
merchandise. After that, the management is to count the inventory which is step three.
This lets the management know the count of their current inventory. And in step four, the
PAS 2 Paragraph 9 states that inventory shall be measured at lower of costs and net
realizable value.
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DISPATCHING
Figure 8
Figure 9
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Dispatching is the process of transferring the goods to the consumer from the
supplier. In Figure 8, the old dispatching transaction system starts with the walk-in-
payment where the customer selects an item and pays for it directly. This will be
deducted to the inventory record of the company before the issuance of official receipts.
In figure 9, the new dispatching transaction system starts with the walk-in-
payment wherein the customers select an item and pay for it directly. The transaction will
be written in the record book of the company. If the item needs to be delivered, the
delivery receipts, official receipts, and release form would be issued. If there is no
delivery, the official receipts will be issued instead. Transactions concerning to the
delivery of the items will be recorded in the summary of release form and daily
transactions of the business will be written in the daily inventory sheet. Afterwards, the
inventory would be checked whether or not the inventory recorded corresponds to the
Business Forms
maintain control. The researchers designed five particular forms that will
be useful for the maintenance of the day to day operations of the business.
The following are the new business forms (See appendices for the designs
of each document):
1. Delivery Receipt
from the warehouse to the main store. This will ensure that
for.
2. Purchase Order
3. Release Form
4. Return Form
5. Inventory Sheet
inventory system proposed three more documents that will support the
form. This will provide amounts and inventory count which relies on
actual measurement.
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making, below are the roles of each documents for the new system.
with exact quantity, desired quality and amount of order. Suppliers will be
warehouse. It also provides the exact quantity, desired quality and amount
of goods being delivered for the purpose of comparing what was ordered
meet the certain qualities that the entity wanted or defectiveness on goods
occur. This document is a proof that some of the goods delivered are
entity uses or sells. Each sheet lists a single product and keeps track of
how much of the product is coming into your business and how much is
still expected to record, classify and measure the transaction that happened
as part of their job. The only difference is that, in the new enhanced
best work each day in order to achieve the larger goals of the organization.
There are many tasks and duties that fall under employee management, but
1. Selection entails finding and hiring the right candidates to fill open pos
4. Reward includes the praise, recognition, monetary prizes, and other inc
ance.
ers and their ability to motivate, communicate, and build trust with their re
ports. The best managers act as coaches for their employees, recognizing t
ensuring quantities that appear in the system are accurate for planning of
inventory cycle.
submitted to manager.
rations are more efficient. In addition, well-defined job roles often boost mor
h other.
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Conclusions
Business Characteristics
The researchers deemed that the business is lacks the internal control
practices such as segregation of duties and inventory tracking and control. For a
and loss.
Recording
method to value their current inventory. Only in the start of 2019, they
implemented a manual inventory system in which the only forms they have is a
delivery receipt from the warehouse and an inventory sheet. The problem with
this is employees often forget to record the items., rendering the system unreliable
Classification of Inventory
limited. The management does not classify defective items, doing this so makes
the management prone to theft or loss. Also, the management does not account
items given as freebies, this gesture can lead to theft and loss for as the
management does not keep track and does not control the following inventory.
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The researchers had designed new forms in which it could help the management
Measurement of Inventory
technique for they have no idea on how many their inventory is. The management
doesn’t exactly know how many pieces of each item is delivered before. Thus, the
Dispatching of Items
The researchers found out that after the sale of products, the staff often
forget to record a deduction to the inventory sheet due to certain obstacles such as
the flock of customers, inquiries and when the personnel forget to record it. Also
the items that were acquired online are not always recorded in the inventory sheet.
management. It can help the management to help prevent fraud and theft.
Recommendations
Recording
order, to order inventory from warehouse; delivery receipt, used for delivery of
goods from warehouse to the main store; release form, used for tracking of
outgoing inventory instead of listing down through inventory sheet, at the end of
the day will be tallied and inputted to the inventory sheet; return form, it will
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serve as the document for returning defective items found during inspection after
delivery; and inventory sheets, used to trach down the levels of inventory, which
Classification of Inventory
such as products/ items which are damaged, broken, and another classification for
freebies to record the number of items that the owner give for free. In order to
Measurement of Inventory
technique for they have no idea on how many their inventory is. The management
doesn’t exactly know how many pieces of each item is delivered before.
The researchers recommend to use inventory sheets, which are updated daily, as a
basis to know how many pieces of each item is delivered, sold, unsold and
damaged.
Dispatching of Items
which are used for tracking of outgoing inventory instead of listing down through
inventory sheet, in order to record the items that are sold, to be tallied and
Appendices
Research Instruments
Guide Questions
Business Characteristics
What is the nature of your business and has it changed over the years?
What are the common problems that the business has encountered?
you use?
What are the challenges that you have encountered regarding inventory control or tracking of
inventory?
Dispatching of Inventory
Do you find it helpful to use a manual system even though it didn’t work at the time you tried
it?
Will you give the time to properly introduce the system to your staffs?
Series of Interviews
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Business Characteristics
What is the nature of your business and has it changed over the years?
Answer: The strength of the surplus store is having a high profit and its weakness is the
Answer: Daily
What are the common problems that the business has encountered?
Answer: I record manually so I cannot travel because I could lose items, even if there
is a CCTV since we do not have an inventory record, we don’t know what are the
items that came in and we do not have control on the items once they are out.
Sometimes we also forget to list down some things, for example we paid the
electricity bill or the water bill, so we start to panic because we forget those things but
you use?
monthly
Answer: We classify our inventory into 3 classes: Class A are the expensive ones,
Class B are the ones who holds lesser value than class a like non branded kitchen
wares or used. Class C are the generic ones. We measure our inventory through
What are the challenges that you have encountered regarding inventory control or tracking of
inventory?
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Problem regarding inventory we do not know what are the unsold items, I don’t know
how much is my asset, I don’t know the exact amount just an estimate.
Answer: Before 2019 were just estimating the inventory but now we already have an
inventory management system. But the problem is sometimes we forget to record our
monthly
Dispatching of Inventory
Answer: We receive the delivery receipt first, and match the items according to the
everything up we display the items in the store by kind and brand as you can see.
Answer: for walk-in, they will have to choose their item, then come to me for the
pricing, after the sale transaction we should record it. But when the flock of
customers or inquiries come in, we cannot record it all at once so at the end of the
day we always have extra sales we don’t remember came from. For online it is
easier, when they comment mine we know right away who buys the product. In
that they will just pick it up in the store and pay it in the store it is already record.
The challenge of this is the bogus buyers, the one who says they will but it but no.
For wholesales on the other hand, they buy in bulk and in huge volumes. The
challenge of this when we are assisting them and there are walk-ins we cannot
Answer: I would like for the system to be up to date, the records are accurate and
Answer: Yes, small businesses like our store should have an accurate an efficient
manual inventory system so that they know what are the sold or unsold items, if the
Do you find it helpful to use a manual system even though it didn’t work at the time you tried
it?
Answer: Yes, since it is easier not so depended to technology. Older people like our
Will you give the time to properly introduce the system to your staffs?
Business Forms
Subtotal
Sales Tax King Louis Japan Surplus
Shipping & Handling Return Form Date
Total Due TO:
Goods Details Quantity Total
Received in Good Condition by the
undersigned
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Checked by
References
Banaag, F. & Ducut, R. (2017).Reasons Inventory Systems Failure and Recommended Solutions.
Inventory Management And Control, 153-154
Bragg, S. (2011). Inventory Storage. Inventory Best Practices Second Edition, 67-83
Grant, M. (2019). Strength, Weakness, Opportunity, and Threat (SWOT) Analysis. Retrieved
from https://www.investopedia.com/terms/s/swot.asp
Tejada, C. (2007). 5 Budget Japan Surplus Shops in Your Neighborhood. Retrieved from
https://www.realliving.com.ph/shopping-services/shopping-guide/5-budget-japan-surplus-shops-
in-your-neighborhood-a40-20170913