1. Bokka Ski Line, Inc. is a manufacturer of equipment used for snow skiing and snow boarding. The company"s products are sold under two brand names, one comprising its top-of-the-line equipment and the other comprising its line of moderately priced equipment and ski attire. Bokka"s sole location near Rochester, New York, is home to both its offices and manufacturing facility. Bokka"s products are sold worldwide, and current year sales are expected to reach $180 million.

Bokka"s conversion process begins in the storekeeping department, where inventories and the related records are maintained. Ted Drescoll manages the storekeeping function by reviewing the files on a daily basis to determine the inventory needs. He prepares an inventory status report and forwards it to the production planning and control department.

Production planning and control is lead by Thom Ells. Every day Thom prepares bills of materials, routing slips, productions orders, and production schedules. Copies of each of these documents are forwarded to the production floor. Thom concurrently determines inventory needs by reviewing the following documents:

o Inventory status reports received from the storekeeping department

o Sales forecasts from the marketing division

If additional quantities of materials inventory are needed, Thom prepares a purchase requisition and forwards copies to the storekeeping and purchasing departments. If inventory quantities are adequate, no further action is taken.

Thom Ells also manages the production processes. Production supervisors on each of the company"s six production lines report to Thom. When these supervisors receive production orders and supporting documentation from the production planning and control department, copies of the bill of materials and routing slips are forwarded to Ted Drescoll. In return, Ted sends the requested materials to the production line. Ted then updates the inventory ledger and sends the bill of materials and routing slips to the cost accounting department. He then prepares a journal voucher for the change in inventories and forwards it to Helena McPhea, who is responsible for the general ledger.

At the production lines, the supervisors prepare job tickets to accumulate costs associated with their activities; these tickets are forwarded to cost accounting. They also collect employee time sheets and send them to cost accounting on a weekly basis. The time sheets are prepared in duplicate, and the second copy is sent to the personnel department.

In Bokka"s cost accounting department, Clive Hendersen collects all of the documents to determine the actual costs of the products. Actual costs are compared with standards, and variances are computed. Total variances are used to evaluate managers and supervisors. Next, Clive updates the work-in-process and finished goods inventory files; then he prepares a journal voucher and forwards it to Helena McPhea.

In the general ledger department, Helena updates the general ledger by entering the journal vouchers into the general ledger computer software program. Journal vouchers are filed by date.

Required:

1. Draw a process map of the conversion processes at Bokka.
2. Draw a document flowchart showing the records used in Bokka"s conversion processes.
3. List any strengths and weaknesses in Bokka"s internal control procedures. For each weakness, suggest an improvement.