Page 3 Narrative
Albert Alvarado
Amornpran Boonkrong
Carol Hu
Yu-Chung Mao
Uwaifo Obanor
Rodrigo Viramontes
Overview
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Document/procedure flowchart
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

Displays the creation, flow, and destination of
documents within a system.
Shows the procedures performed at each level.
Page 3
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Document flow of the manufacturing process.
Initial Production Sequence
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Production Control and Inventory control coordinate
what inventory is needed to support the demands of
the sales orders.
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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.
Factor of Availability
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Production Control and the Production Departments
pass information back in forth to see what items are
available for production.
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Machines

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How many and usage of equipment used for production.
Labor

Figuring our how many hours are required.
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How many shifts will be running.
Support Systems

Non-direct material or personnel used in production.
Production Control

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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.
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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.
Production Departments
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Send production order and material requisition to
inventory control when partially finished products
become finished products.
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Transmit time cards to cost accounting.

Forward production status document to production
control.
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.
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
General Ledger

Records the journal entries from Cost Accounting and
Inventory Control.

Sends a status report to management for review.
Journal Entries

Materials placed in production:
Work in process
x,xxx
Material control
x,xxx

To record direct materials placed in production
Manufacturing overhead x,xxx
Material control
x,xxx

To record indirect materials placed in production
Journal Entries

Conversion costs comprise of direct labor
and manufacturing overhead costs.
Work in process
Wages payable
FWT payable
FICA payable
Manufacturing overhead applied

To record actual direct labor and estimated
manufacturing overhead costs
x,xxx
x,xxx
x,xxx
x,xxx
x,xxx
Journal Entries

Conversion Cost continued:
Manufacturing overhead
x,xxx
Accumulated depreciation - machinery
Rent payable - factory building
Salary payable - factory supervisors

x,xxx
x,xxx
x,xxx
To record actual manufacturing overhead costs
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 process
x,xxx
Thank You
Any Questions?