Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A clerk in the accounting department periodically reviews the inventory records in order to determine which items need reordering. When she notes that the quantity

A clerk in the accounting department periodically reviews the inventory records in order to determine which items need reordering. When she notes that the quantity on hand has fallen below a pre-established reorder point, she prepares a prenumbered purchase requisition in two copies. One copy of the PR is placed in a chronological file until the matching purchase order is received. The original PR is sent to the purchasing department, where a buyer (1) decides on a suitable supplier by reference to a supplier file and (2) prepares a prenumbered purchase order in four copies. The original copy of the purchase order is signed by the purchasing manager and mailed to the designated supplier. The second copy of the PO is returned to the inventory clerk in the accounting department, who (a) pulls the matching second copy of the PR from the temporary file (where it had been filed chronologically), (b) posts the ordered quantities to the inventory records, and (c) files the purchase requisition and purchase order together numerically. The third copy of the PO is forwarded to the receiving department where it is filed numerically to await the receipt of the ordered goods. The fourth copy of the PO is filed numerically, together with the original copy of the purchase requisition, in an open purchase order file. When the invoice from the supplier arrives, this last copy will be forwarded to the accounts payable department.

Notes: The process is totally manual. The only information medium used is paper. There are three departments involved. Divide the flowchart by these into columns. Define the process (symbol) in terms of inputs and outputs. Thus, it is ok to show a process symbol with more than one activity occurring. Your assignment is to flowchart the purchase order documents from the point where I left off with the purchase requisition.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngren S Financial And Managerial Accounting The Managerial Chapters RENTAL EDITION

Authors: Miller-Nobles

1st Edition

0136503748, 978-0136503743

More Books

Students also viewed these Accounting questions