Test Your Knowledge 3:

CONVERSION CYCLE
Members
Andrada, Lara Nicole
Bueno, Fatima Jean
Donguila, Shian Aubrey
Lapada, Monica Ingrid
Molina, Krisha Khate

Process Person or Input Output Accounting

Department Documents Documents Records
in Charge

Batch Processing System

1 Production Planning and Production ● Bill of ● Production

Control Planning and Materials, Schedule
Control Route
Department Sheets

2 Materials and Operations Manufacturers ● Purchase ● Bill of materials RM Inventory

Requirements Requisition,
Purchase
Orders,
Route Sheet

3 Production Scheduling Cost Accounting ● Bill of ● Production Work-in-process

Department Materials, Schedule Account
Route
Sheets

4 Work Centers and Supervisor/ ● Production ● Work Order FG Inventory

Storekeeping Authorized Schedule,
Person Material
Requisitions,
Movie Ticket

5 Inventory Control Accountant ● Materials ● Updated Inventory

Requisitions, Finished Good
Work Order Inventory

Controls in the Traditional Environment

1 Transaction Authorization Production ● Production ● Formal Work

Planning and Requirement Order
Control s
Department

2 Segregation of Duties Production ● RM ● Inventory Inventory

Planning and Inventories Control
Control Record
Department ● FG
Inventories
Record
3 Supervision Supervisors ● Timekeeping ● Employee Time RM Inventory
Activities Card
● Job Tickets

4 Access Control Accounting ● Source ● Special Assets

Department Document Authorization
and Formal
Documentation
● Materials
Requisitions
● Excess
Materials
Requisitions
● Employee Time
Cards
● Audit Trail

5 Accounting records Accountant ● Work Orders ● Audit Trail WIP Account

● Cost Sheets FG Inventory
● Move
Tickets
● Job Tickets
● Materials
Requisition
● WIP File
● FG Inventory
File

6 Independent verification Cost Accounting ● Materials ● Calculated Inventory

Personnel Requisition Variances
GL Department ● Job Tickets ● Reconciled
Internal and ● Journal Cost
External Vouchers Accounting
Auditors ● Inventory ● Summarized
Subsidiary Inventory
Ledger Control
● Physical ● Actual
Count of Inventory on
Inventory hand