Study Figure showing the level 0 DFD of the cost accounting system. Note that the raw materials and finished goods inventory processes are outside the context of the system shown (i.e., the DFD covers work- in-process inventory only).

a. Draw a context diagram for the system as it currently exists.

b. Assume that both the raw materials and finished goods inventories are within the system context. Prepare a context diagram for the revised system, and redraw Figure to reflect the revised system. Ignore the ordering of raw materials from vendors; start the raw materials process with the receipt of goods. Also ignore the issue of finished goods. Keep the assumptions that the company uses standard costing for allinventories.

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General GL cost of goods completed update NOTES GL standard costs applied The work-in-process data reflect standard costs. process Production work Move ticket data ⓑ Assuming that MOH is applied on Close manufacturing orders the basis of DL hours or DL dollars, the total standard DL hours (or dollars) would be obtained from the work-in-process file Standard MOH rate per hour Record standard Work-in-process inventory data ⓐ Standard RM Final move ticket data Inventory prooess yissue notice RM = Raw materials DLT] = Direct labor MOH Manufacturing overhead Std.Standard UCUnit cost (per unit of RM Std. DL hours Production work Standard cost master data Employee/paycenters master data Excess RM issue notice or per hour of DL) Std. UC Std. UC Actual hourly pay rates RM returned notice Job time data Work-in-process inventory data a General ledger master data 2.0 Compute RM quantty Compute DL variances Actual MOH incurred variance Flexible budgets GL DL GLRM variances DL variances MOH variances report Compute MOH varlances variances update Budgets master data update re RM varlance report General ledger Various managers GL MOH variances update Standard cost master data General process