Page 342 - Accounting Information Systems

C H A P TER 7 The Conversion Cycle 313

FI G U R E
7-9 BATCH PRODUCTION PROCESS (continued)

Storekeeping Inventory Control

Review Materials
Records Inventory
Records
Excess Mat'l Excess Mat'l

Inventory
Status Material Returns
Material Returns
Material Req
Material Req
Update Materials
Inventory Inventory
Records Records
Journal
Issue Raw Materials
to Work Centers Voucher
in Exchange
for Material
Requisitions Mat'l Returns
Excess Mat'l Excess Mat'l
Mat'l Returns
Material
Req Mat'l Req
A
Material Req B
Cost Acctg
Purchase Update
Requisition Inventory
Excess Mat'l Records Finished
Goods
Inventory
Journal
Voucher
Mat'l Returns
Work Order
File
General Ledger

requisitions enter the production process and flow through the various work centers in accordance with
the route sheet. To simplify the flowchart in Figure 7-9, only one work center is shown.

WORK CENTERS AND STOREKEEPING. The actual production operations begin when workers
obtain raw materials from storekeeping in exchange for materials requisitions. These materials, as well as
the machining and the labor required to manufacture the product, are applied in compliance with the work
order. When the task is complete at a particular work center, the supervisor or other authorized person
signs the move ticket, which authorizes the batch to proceed to the next work center. To evidence that a
stage of production has been completed, a copy of the move ticket is sent back to production planning
and control to update the open work order file. Upon receipt of the last move ticket, the open work order
file is closed. The finished product along with a copy of the work order is sent to the finished goods (FG)