1. Page 3 Narrative Albert Alvarado Yu-Chung Mao Amornpran Boonkrong Uwaifo Obanor Carol Hu Rodrigo Viramontes

2. Overview Document/procedure flowchart Displays the creation, flow, and destination of documents within a system. Shows the procedures performed at each level. Page 3 Document flow of the manufacturing process.

3. Initial Production Sequence Production Control and Inventory control coordinate what inventory is needed to support the demands of the sales orders. Program Management directs Production Control on the quantity needed to meet the demand of the customers. Production Control and Inventory Control report back to Program Management the time required to complete production of goods.

4. Factor of Availability Production Control and the Production Departments pass information back in forth to see what items are available for production. Machines How many and usage of equipment used for production. Labor Figuring our how many hours are required. How many shifts will be running. Support Systems Non-direct material or personnel used in production.

5. Production Control Communication between other departments to check status and give requests for materials required. Forwards production orders to cost accounting, production departments, and files a copy in numerical sequence Sends three copies of material requisition to inventory control. Retains a copy and files the copy in numerical order. Distributes one copy of production schedule to production departments and files the remaining copy by document issuance date.

6. Production Departments Send production order and material requisition to inventory control when partially finished products become finished products. Transmit time cards to cost accounting. Forward production status document to production control.

7. Inventory Control Forwards journal voucher to general bookkeeper. The voucher depicts cost of direct and indirect materials. Files a copy of material requisition numerically, sends remaining copies of documents to production departments and cost accounting. Dispatches completed production order to cost accounting.

8. Cost Accounting Receives reports from the other departments to sum up the costs of direct labor, direct materials, and manufacturing overhead. Sends journal vouchers to general ledger. The journal voucher includes journal entries of conversion costs and cost of goods manufactured. Gives completed production order to management

9. General Ledger Records the journal entries from Cost Accounting and Inventory Control. Sends a status report to management for review.

10. Journal Entries Materials placed in production: Work in process x,xxx Material controlx,xxx To record direct materials placed in production Manufacturing overhead x,xxx Material controlx,xxx To record indirect materials placed in production

11. Journal Entries Conversion costs comprise of direct labor and manufacturing overhead costs. Work in processx,xxx Wages payablex,xxx FWT payablex,xxx FICA payablex,xxx Manufacturing overhead appliedx,xxx To record actual direct labor and estimated manufacturing overhead costs

12. Journal Entries Conversion Cost continued: Manufacturing overhead x,xxx Accumulated depreciation - machineryx,xxx Rent payable - factory buildingx,xxx Salary payable - factory supervisorsx,xxx To record actual manufacturing overhead costs

13. Journal Entries Cost of goods manufactured denotes cost of products completed in current accounting period. The journal entry to account for cost of goods manufactured is: Finished goods x,xxx Work in processx,xxx

14. Thank You Any Questions?