Page 340 - Accounting Information Systems

C H A P TER 7 The Conversion Cycle 311

FI G U R E
7-7 MOVE TICKET

MOVE TICKET
Batch Num: 1292
Units: 100
Move To: Work Center 153
Operation: 4a
Start Date: 1/8/09
Finish Date: 1/10/09
Qnty Received: 100
Received By:___________________________________

trigger or result from each task. To emphasize the physical flows in the process, documents are repre-
sented in Figure 7-9 as hard copy. Many organizations today, however, make this data transfer digitally
via computerized systems that use data entry screens or capture data by scanning bar code tags. In this
section, we examine three of the four conversion cycle processes depicted by the DFD in Figure 7-2. Cost
accounting procedures are discussed later.

PRODUCTION PLANNING AND CONTROL. We first examine the production planning and con-
trol function. This consists of two main activities: (1) specifying materials and operations requirements
and (2) production scheduling.

MATERIALS AND OPERATIONS REQUIREMENTS. The RM requirement for a batch of any
given product is the difference between what is needed and what is available in the RM inventory. This
information comes from analysis of inventory on hand, the sales forecast, engineering specifications

FI G U R E
7-8 MATERIALS REQUISITION,EXCESS MATERIALS REQUISITION, AND MATERIALS RETURN TICKET

MATERIALS REQUISITION/RETURNS
Issued To: _____________________________ Work Order Number_________________
Date: _____________________________

Material Quantity Unit Extended
Item # Description Issued Cost Cost

Authorized By: __________________________________
Received By: __________________________________
Cost Accounting: __________________________________