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Production & Inventory Cycle - Coggle Diagram

- - - - Outputs
        Finished Goods
        Services
- - - - Raw material inventory has been determined through the allocation of purchases of such items in accordance with the accounting policies of the entity applied on a consistent basis.
      - Cost of sales has been determined through the allocation of the costs of inventory sold in accordance with the stated accounting policies of the entity applied on a consistent basis.
      - Inventory of finished goods has been determined through the allocation of material, labour and overhead manufacturing expenses to manufactured goods, in accordance with the stated accounting policies of the entity, applied on a consistent basis.
      - Inventory of raw materials, work in progress and finished goods are stated at
        the lower of cost and net realizable value
  - - - Inventory should be kept in a
        locked storeroom:
        -access should be limited to authorised personnel (store man and others);
        -key control over doors,
        gates, etc.;
        -security guards, dogs,
        etc.;
        -camera's, etc.
        -Inventory susceptible to damage are safeguarded against the elements: - under shelter, etc
        -fire extinguishers, etc
        Inventory sufficiently insured
    - - Completeness and Validity (Occurred & Authorised)
        Inventory only leaves the storeroom based on properly authorised documentation
        
        -No changes are allowed on the
        issuing notes.
        -I.r.o. sales to clients, no inventory may leave the storeroom without a delivery note
        -Gate Control (Guard)
        -Count items leaving premises
        
        Agree to delivery note
        -Sign as proof of review