CHAPTER 13: CONVERSION CYCLE

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CHAPTER 13 CONVERSION CYCLE

• I. Introduction
• II. Major activities (Exhibit 13.1)
• A. Manufacturing planning
• B. Raw material inventory control
• 1. Economic order quantity (EOQ)
• 2. Material requirements planning (MRP)
• 3. Just in time (JIT)

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• II. Major activities (continued)
• C. Start manufacturing activity
• D. Manage manufacturing activity
• E. Work in process cost
• F. Finished goods
• G. Generate reports

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• III. Source documents (Exhibits 13.2 - 13.6)
• IV. Transaction processing in the conversion
  cycle (Exhibits 13.7 - 13.10)
• A. Customer order processing (Exh. 13.11)
• B. Manufacturing and raw material
  planning (Exhibit 13.12)
• C. Transaction processing for completed
  manufacturing (Exhibit 13.13)

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• V. Reports
• VI. Computer manufacturing tools
• VII. Just in time manufacturing
• VIII. Internal control structure