Serial No........ 421 Taleo ot ae UNIFORM COST and ACCOUNTING SYSTEM for MILLERS’ NATIONAL FEDERATION (Revised November, 1926) i PREPARED AND DISTRIBUTED TO MEMBERS BY MILLERS’ NATIONAL FEDERATION Chicago, Illinois INTRODUCTION Purposes of Uniform Methods for Trade Associations Uniform cost finding methods have been adopted by many trade associations; and such methods, if properly formulated and generally accepted by the members, exert a very helpful influence in bettering conditions in the industry. In accomplishing this objective, uniform methods have three functions to fulfill, which are = First = To enable each manufacturer in the industry to conduct his own business in the most intelligent and profitable manner. Second = To eliminate that part of the variation in costs between members which arise from totally dissimilar methods of calculation. Third = To make possible the comparison of cost information between plants in such a way as to point out wasteful and uneconomical practices of either the in- dividual or the industry. Uniform methods do not imply uniform costs. All the factors affecting cost will never be identical in any two plants and these variations will be reflected in costs developed by uniform methods. Differences in such items as kind of equip- ment, wage rates, plant efficiency, etc., will all produce variations in the final cost of the products. Functions of a Cost System The final objective of any flour milling company is to make and distribute profits. The profits in any business measure the difference between the cost of the product sold and the money received from its sale. Unless the management of a business knows exactly what the product costs to make and sell it is impossible to determine intelligently on selling policies. It is a fundamental axiom that a Simple adequate method of determining costs is absolutely necessary to the success-= ful operation of any business. A cost system, to be satisfactory to the individual manufacturer, must fulfill three primary functions: First, it must make possible the securing of an accurate cost of each product; second, it must enable the accounting department to so keep its records as to provide monthly statements of the financial condition and general status of the business; and third, it must provide certain data to enable executives to exercise close control over the details of the operation of the business. In the following pages we have outlined a system which we believe fulfills these functions and at the same time provides the necessary data in a Simple and effective fashion. : f - 4 eee j » ar in) a : i 4 Fs Sen ‘ ‘ ; A COST ACCOUNTING Elements of Cost An adequate cost system for the flour milling industry is comparatively Simple. Most plants engaged in the industry produce only one main product and all elements of cost may be expressed as so much per barrel of flour. On the other hand, there are certain difficulties inherent in the industry which can only be met by arriving at a common and uniform understanding of the proper way to handle them. The cost of a barrel of patent flour consists of five separate factors = the first is the cost of the wheat; the second is the cost of the manufacturing or conversion; the third is the cost of the containers; the fourth is the cost of administration, and the fifth is the cost of selling or marketing. From this total must be deducted the values of low grade flour and offal. “As this is one of the most important points in determining the cost of a barrel of ‘flour, we will discuss for a moment the question of these offal credits. Deductions For Clears and Offal The present general custom in the industry is to credit the offal values at the anticipated selling price. This means that no allowance is made for profit on the by-products and that no provision is made against a possible change in market price which might reduce their value on the day of their sale. The most conservatively managed mills make a reduction from the anticipated market price of the by-products before crediting the values to the cost of the patent flour. We are very much impressed with the value of this method of handling the matter and recommend that the allowance be made at current by-product prices the day the order is booked or anticipated prices the day the flour will be made, whichever is lower, and we provide that this price be reduced by 40 cents a barrel for clears and $2.00 per ton for feed. This policy will tend to increase slightly the calculated costs of the patent flour; so that the cost figure, which should mark the line of last resistance in determining whether a certain sale is or is not a desirable one, will be set a little way forward. Separation of Grain Department In outlining the proposed system we will first consider the cost of the wheat ; and at this point will seek to establish a major change and improvement in the accounting methods of the industry. The profit or loss secured in operating a milling business ordinarily combines two factors; namely, the speculative profit or loss in purchasing the wheat and the converting and merchandising profit or loss in producing and selling the flour. Most mills seek to minimize the speculative profit or loss by purchasing wheat against the commitments in flour; but even with the best intentions and practice there is bound to be some profit or loss in purchasing, and under present accounting methods this purchasing profit or loss is usually in- ' extricably mixed up with the conversion profit or loss. It seems to us to be fundamentally necessary that these two factors should be distinct. Only in that way can the true sources of profit be known. We there- no os thd oh ha 7 oo ina ne this 2qeetee + he, ‘goteneuten, eh | nine ng ‘ghissamennalas ani na a; eos ret is p A nadavd te don \aiaeeeel ‘ont My Laine: Hides arhaky o% fae banca. od, wnt ie ‘CAS eves iusek ses ye ‘ih Dati ened matt i hha’ ais ie 52 Fit) ah dE ‘sual ds, v ‘ i . pe pr ret ’ ¥A Pepe 4 @ pa " Ci ae RO Bes sit ‘BR Dense Ys wet Gx wt Bink rab eh. oe PA ae +08 ue oo ii ine dowmet 7 aaa ay ® re Hinna@ 2 19% dined a | 4 'y Fe on pate ae ’ .. <—a2@ ' ols ah Lariat i, Ae era “ Py ( yy f har.) er’ i yi x ; Prat? chevkyaeeael mt Ba isa ea ise ite hangs Rah yt a) bona ‘ait wit foto Lem Plog Bike vitae bee act te, adoilige of eed ine. Dalagieneh: nage, Aol He a pemead ae ae ghee ptua. Rue ‘ehoutdont dy f han’ Pes fore provide a system of orders and commitments between the Grain Department and the Mill Department which requires that the Mill Department be permitted to purchase from the Grain Department the wheat equivalent of its flour sales each day, at the "cost card" milling mixture values, based on the market price of equivalent grades as of the day the orders for flour are taken. These wheat orders on the part of the Mill Department and sales on the part of the Grain Department are called "grain contracts." This means that the wheat position of the Mill Department will always be in balance. The Mill Department will always have ordered from the Grain Department exactly enough wheat to cover the flour sold. The "long or short" position will rest in the Grain Department and all of the profits or losses made in connection with the transactions in purchasing of grain will be established and segregated as pertaining to the Grain Department. The grain contracts, then, give us a basis of crediting the Grain Depart- ment and debiting the Mill Department just as though the two divisions of the business were distinct concerns. A complication arises at this point, however, due to the fact that in many mills it is impractical to "earmark" grain delivered to the mill as going into specific sales, or to the specific related grain contracts. For this reason it is provided that the Mill Department be charged with wheat assuming the deliveries to be made in the order of the grain contract bookings. While we thus distinguish between the functions of purchasing and milling and set up the profit or loss of each department separately, the Mill Department is re- quired to bear the operating expenses of the Grain Department and the Grain Department's profit or loss will thus reflect only the speculative factor due to purchasing. Grain Contract Record Most mills operate what is rather commonly called a "long and short state- ment," which shows the daily position as to wheat and reflects any lack of balance between the wheat equivalent of the unfilled flour sales and the total stock of wheat on hand and purchased. A study of Form 1 will show that the establishing of a separate Grain Department requires little more than that this record should be extended to reflect dollars and cents values as well as bushels. The wheat requirement of the mill is priced each day, as has been said, at the "cost card" milling mixture values, based on the market for equivalent grades; The totals show in bushels and dollars the purchases of the Mill Department and the commitments of the Grain Department for the month. At the end of the month the Grain Department's deliveries in bushels are priced so as to absorb the grain contracts in the order of their bookings: This leaves the unfilled grain contracts to be carried forward to the following month priced at the average of the contracts unabsorbed by the volume of the month's deliveries. The manner in which the actual cost of the grain delivered by the Grain Department is thrown against the Grain Department's income from sales to the Mill Department - thus establishing the Grain Department's profit or loss = is shown in the second part of this report which deals with general accounting practice. ‘Standard Costs The present custom in determining the manufacturing cost of a barrel of flour is to take the costs that have actually been expended and distribute them over the number of barrels of flour actually produced. There are a great many minor hice ‘ gir’ Seay fy, ) ' id: kent ant eee sot edngmd temo tke evaded 4a eteea thera wl Pon aye T De ROT LETS! Ay deli, : ated £048 B4oe Veh Bd) Go saetevtipe taate aire . Supe So. eo hie bisa), wot ease h pat: ptwq ah? ho cbr dandy eeekt Vester ote ake tok One ore ‘oad ade ‘ifeo ee gemdeagas ghowh ett te fase ene ae sosea§ ch of evar! Wile tnomrtaneh (108) ede to meliteod Saew eae eae ere f hy’ rohts: 2 Gut ayawig. [12m Samana ei eae » prot*, eat bee sett) od aords oe eee EOL “keh TOS eck: Se ee Bae santana boa lld 1 et Lale eee FO Mts. GARGS ited Ba 94 4 oe RSE te AG Bue Avy. MT od teat > s wioeal IwEPR tas betepo dermis eth £6 oer rey a teewo tons Anata ae! ‘haat’ 2 nc doch Pack e Boe ‘? Tees 4 os kan y ei 32 ALLS Vom at oie ; en FD : > ee: SYCe Phe he Pay bd, BS nV busy ~ © Free) ab Bute oTy te, ci et rage? CLIM ee Rae} Heh! Lye We ek funtedow Haas ‘in eabyo ted OE) aber alae 2 = mv, at es A ¢ v ‘ A 4 i i y ] of +308 e a - 9 ativax > a ies bigs 4 as oot b: bt awk ros Oris. vise el Yer: earls t i atthe tele Fre Gas wool" g helleo eingnied Tees ‘ak we erereae oikte oy peat ae 1 Boek. Cre ASHE Pes: 20 ay iv'< eat CET 2 pitas ony evort Dy ‘ To Ete Tages P & Bask wl He LOogtihy Sas Be: saw sav ioe 1 $f she, » ats rattd whale Liha; AO apie Do uate ae Osage bt de lt) (eg altel) seddenae rents tothe etia + pe Siow we Bente. otoee thee we: Lo +0G% at F > : 4 7 — 5 sel bay oe a q a hd i ' ¢ a i a ‘ P a I. OG Bx, ik & »y Spe pho ey Pe i, - ye ha Bh Piet :) ‘ : Ta 7 tf. ee * Tits Lae él a? Bag fish Kets” &Lasiaud Pt elinws oF tok tneriipee are, ety : eet dorert eh hee ee Slee ts RY ry > Soe @ a Taue! iio Bits iivatitnow ple pele ae Map et i of 000%. A od Miner t Ow kertad ad) oes Longe rig Beechts wt te enter ate vd Pos sac wa efnaetaow oF me aneteve ls it) MG) Dea RLEH Bier wd te Feye ‘iyo pan subi nl vat i PER writ alin wot aosol @* ten Ppecady ahead tts tarcdame.. ra r3 ; saoite + @ah fy , 2° 0 Gaur tae, ebay apg ‘potdel idia® meee a HHL IGOTY Biclsraiboon Leteges' sale ale te iD tei) ereyee Benicar Pa wy oe brite cata SO > : Pst! P pat 4 ree ak ce camer. 8. ho Teo aitboasaians wt wiiadioancadle Rh abdege) . THxa LMG aleiete lh Bisa betes newers YALA hee ev egies a Yotig yard Joe 6. es nay NS Rises his bogs > variations of this plan but the majority of the mills are operating on what has come to be known as the historical method. In recent years the use of historical costs has been seriously questioned and the inherent inefficiencies of the historical method have been thoroughly explained and set forth in a great many books and articles written on the subject. As a result of this discussion, the so-called standard cost method has been grad- ually developed and is today in use in a great many of the most successful companies in the country. The standard cost method consists, briefly, in pre-determining what the costs should be and then measuring actual performances in terms of these standards. We recommend the use of this Standard method to the flour industry in so far as the cost of manufacturing, containers, administration and selling are concerned. The first step necessary in calculating a standard or pre-figured cost is the determination of the rate of production at which the standard will be figured. If we set up an operating budget for a mill it is obvious that certain elements of this budget will remain fixed regardless of whether we are operating the mill at 50% or at 100% of capacity. Certain other elements will vary somewhat in accordance with the rate of operation although not in direct proportion to it. Before we can pre-determine the cost of making a barrel of flour, then, we must fix upon the rate of activity, or percentage to capacity, which our cost is to represent. In the light of past performances and normal expectance for the future, each member will be in a position to determine at what percentage to capacity he is likely to be able to operate. There is considerable difference of opinion as to what may be considered "monthly capacity" but for the present it will be based on one=twelfth of 300 days a year at twenty-four hours a day. The daily production will be based on the number of barrels produced on recent long runs of thirty days or moree At a later date, when sufficient information has been gathered from re- ports of members to the Federation, it is expected that it will be possible to determine the normal percentage to capacity at which member plants are operated in the various territories: At that time members will be asked to build a secondary budget based upon the average percentage to capacity for their region. Operating Budget The budget rate of activity having been determined, the next step is to prepare a carefully worked out monthly manufacturing, administrative and selling budget. This budget must be built up in the same detail and with the same classifi- cations that are to be used by the accounting department in determining and recording the actual expenses incurred: The whole meat of this method of cost determination lies in a comparison of the amounts actually expended with the standards set up in the budget. For this purpose we recommend the use of Form 2, which under Section "A" sets forth in exact detail the various elements which should be included in the manufacturing budget; in Section "B" the various items which should be included in the administrative budget, and in Section "C" the various items which should be included in the selling budget. In the smaller mills, where a detailed division of the expenses is unneces- sary and undesirable from the standpoint of clerical economy, the division of the cost items can, if desired, stop with the main classifications indicated on Form 2. The larger mills, where it is necessary to keep a more detailed analytical record of Lay ih ; aA eh Lin ae 04 winks pie ott ide | ed b ka : * boitied, Labdtigaa Ved wat asada: Saale “Ye eet outs dane’ salt a ort Gtirent, Leo kit Gla wih ee, ere Sted Ieee ‘oi be ine am FAeTs Me dsnek: $9%- Ae esc bas kad arty per foabay iy y anecreci & ch ek Bk Yaar 22 S08: ; te ee ) 1 tape! rms Fes shee IG att. re te cite aie set? yard Dit Bd: Sy nneede, Riek, Se Caw acy Semmens - en tedea be suet e LE we aati : : hh ge fuk yreeedoen ake Jes am srbory to-ehaky oe 10 pods } b [peat 19% soRnad pak ins eqaha wi) oitveaex boxtt, sande r {fe "ext pone ce ssnagno SOR x , yo ecco ta: toda aa ae Coa YEO! SAO ; ; yf Bolte yt of gQrts oon . Bi rs oT la sf re cots hdog min soa -630teq0 a) es Ps : Se Lisson” oe yetsnee . ‘ vite seee’ sa ated! 902% necks ' f a Lats yee baat ogi ote ae : G ie rey ‘otek ae . a Pero scot anl2) OMe oT fi if 0G.) 02 ey , oe a uf The ¥e en pirates aa hole j gi Hand saivak wily Roma elat ag ig celery tere md Bathe aie SHS Set Ov « ; seh oma r gb. gi Plidd: sé Fare %) ui fy nt! vii "aged Mies HAIR etl? ee. Been ad ry bi 31 At pfs te 2 ig: iw eRe) Lipo gi 9a) aa eb git Heiw bebeeahey gs Lagsor a petsore&, Oc)» 'S hascs! Paphitis HO" ho, what, OEE hasantonn’t’ OW. easicae re vs Logik ad bine’ Raisin’ t denote ai S1ee: *pohd Piaget re: Vusct ; ia” S62W it j sm fiav a a na not soot otah in ote Ge Ti eu s i SB? tt ? polyoak G ie pees ta if ue aepneune ett 20 porey ye Lbittasee ls foiwtey sion te oo Denes co Lisaniial anrotiaehtiseesa hoe. a ee b ‘ . 4 er) va f f y al iy ia DA me ot EY ih ond setonosa, Ldolto.lo. Ro. seamen ie: aoe oF Atty Posighete JRO Dnt Can oe bein sae wom he Loney oF the expenditures, are urged to adopt the standard list of operating accounts out— lined on Forms 4 and 4-A. Even this list can be elaborated by additional sub— classifications. In other words, the plan which we suggest is so elastic that it can be used by both the smallest and the largest mills, bringing out information in as much or as little detail as desired — and yet making the totals and the per barrel costs of these totals absolutely comparable. Form 2, then, will serve three purposes = first, for the member's own use it will serve as a yearly and monthly budget; second, it will enable him to compare each month's actual performance with his budget; and third, it will serve as the report which each mill will make monthly or at such other periods as may be agreed upon, to the central office of the Federation, so that composite costs may be com- piled for different territories, different sizes of mills and for the industry as a whole. Budget _ of Fixed Charges As a preliminary to the development of Form 2 it is necessary to determine the fixed charges, and this can best be done on a sheet as per Form 3. This sheet should be worked out once a year at the time of preparing the budget, and having been worked out does not need to be touched again until a new budget is prepared. No changes will even then be necessary unless additions to the property have been made or variations in valuation occur. It is through this fixed charge sheet that we determine monthly charges to operating costs for depreciation, actual interest, insurance and taxes. ary Depreciation Discussing these fixed charges in detail we come first to depreciation. Many practices in regard to depreciation are now carried on in the industry, many companies making regular and definite monthly depreciation charges, while others ignore the item until the end of the year and then make a charge depending on the amount of the profits. It is our earnest recommendation that it be definitely recognized that _ depreciation is a vital and necessary cost, and that proper depreciation charges be included in the budget and in the actual operating figures which are worked out monthly for comparison with the budget. A definite schedule for depreciation rates should be adopted by the industry. As a basis for your consideration we recommend the following schedule: Buildings - Concrete . 2% Brick and Steel 5% Mill Construction 4% Ordinary Brick 5% Frame 6% Machinery and Operating Equipment _10% General Equipment 10% Office Furniture, Fixtures & Equipment 15% Automobiles and Auto trucks 25% It is obvious that no depreciation should be charged against the investment in inventories, land, cash and accounts receivable. The amount of depreciation charged into costs monthly will be one-twelfth of this total amount and the debit to costs will be offset by a credit to the Depreciation Reserve. The only debits to this reserve account will be amounts (2) | are - 4 Si Bie ¢i feds. a! eovdw aelq aft Bate Aediant | oo .6a Yaw BERS a7 feog init Baht: Tos! fia 10 deste 343 TIS i vo nbint wet & LLdn eae eatin: got lA. vases te 4 hier: a Ree a , " atead iP ak werfenbal res yd = ene wi BTS PeLANOY =p 3 EEL kage ety aus’ a: mau! bonnie od haa Pe kE ORES ROVE Cee Ev tins ae bef ppadads $6614 ot if Abts op a ei lsa Faags at say Dae: Sel lame an? AT itace: bey Sai ig FP ent galdpa TOK hus ~ baitgeb ek fisich ase ofdataquse Yfer a loads eer acer aa tivo atyodwien eff 10%) « “tho- be beet gotas evree Lite seaah: re y3 {. ei eeoe . move prsphud yisiicou fot YTIBOY sas") lie 7h Doe fea g ios t rf von Litw dh ghetiy, OR ‘ seqdud gin min ‘gocsorto Tag, futons 2 \ {yam #8 san ivory. wersre Moac FS To YLATAOG otam Iitw {iia done ; i Zz ok Lghes. an: th enrirto f¢ w he a r yee Indl ox Kors. Giisa ~relbrtotiazsed $19 TR ate S iene te yoh att oF vend 000 8 a Fag WseBeaoOn Eh $F S ario% Xb : Ki ge tid ee eh ae & 10 O8@R 8G seed aad @lcs fa ht ey j } a* hw 7 ORM, tres ? * ; whe ots Ts (80T S PARP ‘sua. eit gotg-to ards ; ud (ed? BLOW OSs Birtosie 7 ed os been tn rae. “ “ hi Cir": i Gah > Gxt s Te er hae ¢ é Un Pkt RRS Boia PeRBe oem ed fond ay gadt 2aede @pvena bess: diet MgGorty ah, gE ce teaey aot deutey, 6 Be + ave faszago of pegredsl aS f ‘ ‘ i ° a P 4 x Pastrods ght. 44m * roy “IS. ee ‘Oo Bie 2 pack tesa igen Ol Te cht e199 GF 4 ~, w Las to wy hextt gents satel ; Sh wes oas ott ke ie RAstaer, WER anh Sey Rael at, Bteaet nt wrattn. aotietootg ae y lef iinort ating io Dee talugat es sMeeoh @a%eeae 5 edt cond ois 1 ey Uns to bad etd freon ; 232% veh i: &; ae bird 20% 3 iiahusmmenet s800788 ss emer rly Cty ataeqaed Fader sct . Doe eae YTBBEAVER bus fariv’ ® $ 150) awl kis. CS "¢ . rfenaqo isuso8 ert si bao ‘renanitl atophud ond atte cont TOgmeg > » 4 _ P 4 —_ > + ~ t a ~- ot > co isaugeh tek alabetios hegeiecdy A ; sLibece , ys | oronpaet ce Re, ) J oaf2 bas mokak &» ! ao kinwrdaned SIEM | | stant Swinsaneh — erteth Bot POL . a cae ROS sens Saved, Cus vemde ar bewredta ed PPT esata ad ee LY | .2idoudeos®, Sao RRR Pees | denies de ad btw wtiigon geet etas: Peer a gob 36 ott. of diheta 6 wt seanhe ad sate wige 0, Aided. edsybae ot 2 of ; i ‘ . 2 taMson, ed Sire Liam ovgpaet aids + atideb Xs : \ ae ee pee) wigs 1 pa ys ne Wie Budget of All Other Charges Having entered the fixed charges from Form 3 on Form 2, the other charges called for on each line of Form 2 are budgeted separately. The range of the items to be considered are suggested by the list of expense account titles provided on Forms 4 and 4-A. ; There is no member whose account titles have in the past agreed exactly with the list given. Nevertheless, whatever the titles used the expenditures will have been of a nature that will more or less readily fit this line-up of accounts. It is not imperative that members adopt the suggested titles so long as it is possible to group the existing accounts to provide the broad classifications of out-go shown on Form 2. However, it will be found advantageous to adopt the Standard titles, because it will simplify reporting and because it will make pos- Sible highly detailed comparisons between plants where desired in addition to the broad comparisons mentioned above. The list of expense account titles shown on Form 4 comprises a great many more items than are called for on the budget as shown on Form 2 It is necessary, then, to provide collection sheets on which the group totals may be secured: See Form 5, Power Charges; Form 6, Auto and Truck Expense; Form 9, General Manufacturing Expense; Form 10, General Administration Expense; Form 1l, General Office Selling Expense; Form 12, Outside Selling Expense, and Form 13, Branch Office Selling Expense. In two of the elements of cost the budget calls for more detail than is provided by the ledger accounts. Hence, we have Form 7, which gives an analysis of payroll by departments, and Form 8, which makes a departmental analysis of salaries. Forms 5 to 13, then, are to be filled out with amounts which conservatively rep- resent the estimated expenditures to be included when operating at the budgeted percentage to capacity. The amounts are then transferred to Form 2, where they com- plete the necessary entries in the budget column. The next step is to figure the budgeted cost per barrel for each item and for each total. The number of barrels to be used in this calculation is the budgeted standard. Comparison of Actual Cost With Standard Cost An examination of Forms 5 to 13 will indicate that they are intended to be used not only as an aid in building the budget but also to serve each month to compile the actual cost. The monthly procedure is naturally about the same as that gone through in building the budget. The totals, when compiled on this sheet, are transferred to their respective positions on Form 2, and thus provide the detailed monthly comparison between the budget and the actual cost of operating. The next step is to show the profit or loss in actual costs as compared with budgets, entering the amounts in the "Variation" columns of all three sections of Form 2. Profits will be entered in black ink, losses in red ink. The variation is shown on a per barrel basis only. . The final step is to make summaries of the totals listed on last lines of sections "A", "B" and "C" to their respective positions on the lower lines (2) Vos hey Sa a ie GA ee aR oe bu a 4 ' } h “ BG THAD LARS: 9 Pe ’ a n r : : ft f : tes ** J i ; i. f rid 4 be regs ie! it 1 : Ne " ‘ sow - Pi 4 Sa io A 7 “e ~ bd re ae S ~~ 7. e ye “) i oe ey a 3 _& 5 = me } Cw \ \ Care at byl is cr i : i: ) ; el eit t vifbeax adai GO aon 24 kee a itd ; tte vol saw an Se ed a wi J re ral ; a fis : rEGRoiiG a a * sobs ered S| ant 8 > d J aw wt ey eae de », -f a vik Poop oy ee | > Bo re OO * cf i tak “a an? rE we ‘ a hoy, tall A by te 2% aN up f et s ety i | r By 4 b} gt b a“ rs a > et Og = fF ’ ; ‘ eae ae Tyeae ‘ a 5 oie 5. x a i Me; i F a ave a ; yh p vit ee, ; > yey e screen wee nate Lil ef Begs ood * a ¢ t : - { hs ‘ > gyehee 2 ’ -_ a natw ctonia mesxiead enon tteqmea hb olind he eh ' GP te seh ten © Ga Ra ee ae i i thy be ie ' jd od ts treqnoe . ‘ .avods 69 cro & Fone ‘e - - pan ye a piel ah me oF vg , ; 4 roo O84 Baits oe He 40° is ‘ ; ; hve ee f pa + a ' ‘ ‘ ‘ | mot Goo ssid edt ie soF aie: Sin 2 TU i? af. * a ' i iy ape i Wy J ‘ iH ; | ae f " “ey f wa o c] hal ‘ ° y he ie » es “a h pee a : i > We ; Q 4 " . 5) ay - | hyo ” ; 4 -_. ts ni ty , 5 a yet 7 . ' ss y ) ty as cf +i at ) 4 ? , Seppe » } O16 Pe ee i oy ve y 7 : ote fon Ft 4 . 3 7 : | 4 1 q ‘ bi l 2 ey ‘ aa ; +) 4 (tama wot pia - khe u $a a ror i - ‘ Ls vi f a ELT if i OF Be Qa @ Saf i ¥ y ' . wu 8 Y efexwiead Fo THomsee. 8 * ‘Ay 6 Sig's taod brabaa sé pte. 2200 Seurd 0 “ Pereserern renee net Lae - ry nace ty Mba). Ky i | a 75 val ict. 3 5 bg “4 es ry mi w Ez Et uw he vol iuvedn ot was fire Poearhrrc git ied! fn d ay sin) ' SHR. Cc IE had We “Tr 7; 7 es “at ie (ry wml +. ns j ptove oF Merrie tO Te WiFiaow etd ae aon de * morte «f { (fac stosny ont it AS ad eid’ garb tte fa 4.59 ev" . ‘ ; fue beet 4 Fi be sett o parebey Bet nua “8 onot gio eavblyinog evizoe Re waciinnwsab Po Téon ieeron ear Poe Je asin er + ae zs i fens ff szon iapies mi e202 To Pa tory att, wos rh mi . a weet heart eon sem eegoe eordd £26 to anmgloo “*aolteliel" ser BA ba et ta Mee ia o" oh \_ eo a te othe Pr Pm ut ice es ie a o>. 0h s in Lone] JH Ls y hGad eck Bees wh Be@eo. wae ae a re ‘ed ‘ ' Ty! i 7 ! i, iN ; 7 ne ir ‘en 7 hae he » £ oe “ Gus 6.4 g rs J Bo ST has ! tat a One of Form 2. The monthly budget column will then show the standard costs to make and sell. The actual cost column will show the actual cost to make and sell for the current month; and the profit and loss section will provide the per barrel figures in the same comprehensive waye We then have in highly graphic and concentrated form a picture of the current costs of the business as measured against fixed standards. Standard Cost Card Having followed through the building of the budget we turn to consider the use to be made of the standard costs in fixing prices. Some mills do not take the trouble to actually refigure costs and prices with every change in market quotations. They move the selling prices up or down, but the extent of the move is quite liable to be governed by the "mover's" state of mind at the moment. This we think is at the bottom of more trouble than would seem at first glance, and without endeavoring to point out the faults, let us emphasize the value and importance of the accurate re-=- figuring of costs whenever there is a perceptible change in the market price of wheat, clears, offal or sacks. Furthermore, let us recommend that this refiguring be done in the accounting department or elSewhere by someone who is not liable to be under the influence of sales pressure. The simplest formula for figuring costs and selling prices is as follows: Wheat at replacement value for kinds and grades required at standard yield, including premiums and freight on wheats In other words, the milling mixture price agreed upon between the Grain Department and the Mill Department. Operation at standard unit costs per barrel - for manufacturing, administra- tion and selling, omitting branch office and other special selling costS.e Deductions for offal at market or anticipated price, whichever is lower, less $2.00 a ton. Cost of barrel of straight 100% flour f.o.b. mill. Deductions for clears at market or anticipated selling price, whichever is lower, less 40 cents a barrel. Adjust to cost of full barrel 196 lbs. _% patent flour. Add to above the cost of two 98 lb. sacks, including freight, on basis of purchase in 1,000 lots. Add freight to destination. Total Also add other special charges for additional sales effort such as salesmen, brokers and the like. Also add branch office selling if sales are through branch offices. Total (2) =) j eae ab . £18 sak elie saab Etiw fini ) Joghur tne treo fentos et? wode Eiiw om ies geon ray “4 ey L Ke . obivonrg £file molioer agol but. Bibs) ant | ie an hetatraeonos bas otsqety gitetd wl ead mote ef weew eee arteries quay | | hortt teaioge betvanem es peactatid ‘edt? to ssaee jadtnre aly Be. a | ‘ i \ tata Ma 1 os “3 re}? ae Fwemsent eda “ke ‘fbi Dei (+ davowts AewolLo® Rts vs t way . ‘ ~ & k ; “shel : > - agizvaseorweq | reo? : ) 4 ee sz ; : 4. ; re ; f aS j . «tt eet os SEP a0 ed. at. el tk socal Bar(peaye vd etecweete io Poom7yre (Ok) Rs shinooos, ge sates 0a : + ae 4 L gewoliet te ef aeoltg ae ic etead gtireyit wot eles toLanne i ae » err | fete Mone ginbey, dehirn shnist vet eutev. ¢ nowsostqet) ti, See ‘ga 2bre ; | Srigtes?. Sov wine ra anlbifogs blety oF itentiAaeU oe 4 pow Jt coun booteaea opie erutere gk tf fee f oe c+ oor ag * Mes tage 2 AM on Lig hy, ert3 4 4 i . j * OTe ¥ ‘ aw 6 £4 vs {4 | "EGS iG UW r i { J LAO «6g fehe : “eeo0l eat wzeveriol pyivte Soetacioifns 20 Fes ; 38 fetta ~o% ere , > A ~~? a! vs fi 10 she. 2 ; ; 2oet tholt BOOL JIdagsarvia Fo ferred ny i , atinicde .evolk rtf Jealolink to Jedtoais Je eteerid tof ; gLatt 190 OD Be -* ‘ ty ead fexzed. {i101 “ - ai ot Dat. coc i Des tet overt Yr “ae “al ah sex tO bh ) BOL), OOO, .f 3 a ; ~woltsaiza Lidtte: setae. tele lshben.cin’ Meseeailnen 1 satto, boa. oofal 10778 faa 8 he EP Oe BAO l yl OO EGA ASwrs baa qe abt ent br eredond denaeine ie t ‘ “i Lane FY Ha * ale foaard clmsorsis “ante nolas | fs aatiton aay ato ig et ‘Lae Lib ott oat ie CT ae t. PRM ain AA Pe The total will be today's standard cost for the grade figured; first, if sold by home office; second, if additional sales effort has been used; third, if sold through branches. Form 14 is a condensed standard cost card for figuring the cost of a barrel of flour, including profits and indicating a selling price. In many mills it will be possible to do all figuring of cost on the condensed cost card. Detailed Standard Cost Cards Form 15A is a detailed standard cost card for determining the cost of 100% flour. Form 15B is a supplementary detailed standard cost card beginning with the cost of 100% flour, following with grading adjustments for clears, adding supple- mentary costs for containers, and also for outside selling and branch offices; thus leading to the total cost at standard and the indicating of profit and selling price. The detailed standard cost cards are given in order to provide the detailed procedure for securing the grain contract price of milling mixtures and for building the condensed standard cost card. The first sheet of the detailed standard cost card is for determining the cost of 100% flour. For this reason it provides for, deduction for offal but not for the deduction of clears in making grade adjustments. At the head of the card pro- vision is made for the grade, the date of the card, the card number, the basic future and the standard yield, with the understanding that 4 lbs. may be added as a safety for invisible loss. . The section for cost of wheat provides for blending of four different grades and protein content, leading to the final blend, the number of pounds at standard yield and the total cost of the wheat for one barrel of flour. If freight on wheat has not been included in the prices used, then the amount for freight will be added, leading to the total cost of wheat and freight. The result will conform with the price charged the mill for the milling mixture. In deductions for offal, the basis is for one barrel bulk price, mill, less the $2.00 a ton allowance. Provision is made for indicating the current or anticipated price per ton, whichever is lower; the number of pounds deduction on a barrel of flour, the rate per pound and the allowance price, leading to the total deductions for offal and the net cost of wheat for barrel of 100% flour after con- Sidering the allowance for offal as a deduction from the cost of wheat. The cost of operation is figured at standard costs per barrel as developed on Form 2. The costs which should be considered are those for manufacturing, admin- istration and office selling at standard cost per barrel, leading to the total operation cost at standard and to the bulk cost of 100% flour. This cost may be carried forward to the second sheet, Form 15B, the supplementary detailed standard cost card. There may be Several supplementary cards for different grades of patent flour, and for different supplementary costs, selling expenses, etc., all based on a Single bulk cost, leading to different total costs. At the head of the supplementary standard cost card, Form 15B, is indi- cated the particular grade of patent, the date and the cost card number of the original card, with a supplementary letter or figure to indicate the particular sup- plementary card. This card begins with the bulk price of 100% flour brought forward from the end of the master card. The gradings for adjustment are for first and second clears on one barrel basis, bulk price, mill, less the 40 cent allowance recommended. Provision is made for indicating the percent of each clear, the number of pounds per barrel of flour, the price per pound on the indicated barrel basis, = Os ota add. ets noah’ te te edie ons Sots Loivk eet 3y beret’) ebaty ene “ort. 2eeo: pembassé rheabe pe god, Bod dot ls: SeRRe Mee h Sno es . * « * ’ pane + ais had, 4a P iN i B | ot om fin Wee m # wv 2 werkt Rie ee * i ‘ieee ~ hot pa i) ne yaruioo sth (howd: cand ove, beans orig serouee a he eae a kala bee” bas lee of hfoeda yee. of ebgaat tam eae Baar ye vig as! o® fanss eadlag de saat Lee eae forged ay Git), He ech) ;ebsow vedio ob, ORRe Bolisot {ieee eae oe evil ooh fil £¢ bet eid oe rad hide Sa teed Bere ee We yon indwron RA TeMOT BuO: Od ca) OF SO) Coe: ages nesta i huh od oie, 2a. te seared wey) wal hoe hed tihitl'g td ‘9 otaathe \ ‘gc Antes Kone To rvs. vad $3 nt WD rie ed $ eased hotg la» of! hodoke neseteda cued ben theta bh ade ng “ath, Uieiwoo £ ovata a sane eos fae 4 a Wee ‘ + iia§ |) ; t ; = ; “iP \ ’ ; ah he hed Pris \ iit tert A Wht ‘sy Aiys a aN . ee ; ra Tool AE Pel teem & cle oe 19% Seaton: en aR Suet t Video) Od TiO Beso h ie aie: PIT agoR, OMe: Loew whe ee eh OPT OTa tea To an ribet a ver eA om Sarr: bvabroaak R) ey ee bovine od 4nhix aw ool. Oy aie 65 bate fata tab eine! ‘eduuaee Re Pat Gee TE oa! Laveen, Pe: Ge MOLI fi) Rae ebay) oe wre old qo pola. of covarewegiiacet ei ettateS Eigse oy if a) weow? obi Bl Goi TOR eRRRe orld VARS Grin ed ae 9 @ . rom Sue sot Bie Weer todd teeed Lae ots oF} yoanesek Oettenolse ghd te tia sad yp? tea! oh) aractl He bq “LLmeopag ote DEGREE Untwotiu® sens. ah ork SFee fe ke oh iol ea eee i doubted ities sole ie ae SESW Th Ree ees NO AR Ee heap ath t Bak Yc; PERE, | » _ “Overs OF Bie; ae carn PE woh bite: Ot fa pice ,wecsaye Ohdy nebud: Tat f Ce wary FECT, 4 eI eeeO, ah) a - ee ‘ uo Das DeUEieue ‘ t * Wret Z i \ j y XX ca | hoe eu’ i o Ss) 7 i rans & v ite ‘ hy i rer ry 1 U ' mie hy A ry J ' ! if a | ‘ Pe. : } ria Pas ae S +" 7 < 7 t 7 = - het, os WATS, S| i ae pent ee Ele! wet 2 Be et ce, AT ie y als 4 ee brid. nbtieot ‘t*Leit Soe teva faudao Leto’s {ey an? i bist tb oo < Yee yi ) aati *$ “ a * hae eo 2) OS eae int) pigeon om) : ae @ Bes ef ect tee Bt P five bse ol «+ peut 7 Poor es | ) ae by \s eat ’ ’ Ae Pay "’ Die ANNA pS @ Sighs wu 4 mel awed ft ‘ug 1809 4 10 me tht Bg De ents, tlw eldaneuon ¢lyahita ge Seer Oe ie, deme 4 Ba eh PG OREO DURBIN RO. eRe Ore te We -O4'T! 1a POLS itty 9 bl si dding mthyeoda’ . baqa ite brad Rett timc 0 a Ray eton SoS nant ihe Avia s AS iam acer APE eh sieges a wid “ acy Reser y ry 4g Vitawitse mo: bande s. gyda. wit’ «ume soecdnn te wagoa mits: ben Oot, hat Bit? a4 Qeatows aot baie Pot bes fetid na cwt ora, ee ee a ae fF 4h 1" he a a 5 wie Seg TE a aR S ali Sipeatee & Sth 408% he, outs ¥ ad Ledger Accounts To begin with, the ledger account titles are aligned on Form 16. This form suggests a plan of account numbering which will be found helpful. At the top of each column is a capital letter and at the left of each section is a number for each line. The account symbol is determined by the column and line. Account A-1l, is Cash, A=-2, Petty Cash, etc. The list of detailed expense account titles has already been discussed in connection with the building of the budgets. This list will be found on Form 4. In addition to this we have provided Appendix A, in which all ledger accounts are named and the debits and credits to each account are described. Voucher Register Before discussing the ledger accounts further it may seem wise to show how the various items of out-go are gathered so as to form the basis of the charges to the operating accounts. All charges are first entered in the Voucher Register, Form 17, whether from bills and invoices, payrolls, salary rolls, or what not. A separate column is provided for each sub-division to which many charges will be made each month. The miscellaneous column provides for sub-divisions for which the charges are not frequent. It will be noted on Form 17 that for each distribution column there is also an adjacent column for account numbers. By the use of columnar "recap" sheets it is convenient to analyze the charges in any column at the end of the month and to summarize them by account numbers. When it is desirable to have sub-divisions of the ledger accounts, a sub number may be added to the account number to indicate the subordinate title, sheet or card. The total of the inventory columns will be posted to Supplies and Repairs, Wheat and Containers, respectively, and the total for freight will be re-distributed as charges to Supplies and Repairs, Wheat and Containers. Accounts Payable will be credited for the total of all charges in the Voucher Register. On the left side of the sheet provision is made for entering the payments from the Check Register. The entries for fixed charges, supplies and repair materials, where same are issued from stores, and any other charges not made from invoices or payrolls, will be checked off the same as if paid, but only when the proper journal entries have been made debiting Accounts Payable and crediting Depreciation Reserve, Inter- est Reserve, Tax Reserve, Insurance Reserve, and so on, for any charges made in Voucher Register other than from invoices and payrolls. The total of the items not marked paid or otherwise checked should correspond exactly with the file of unpaid bills and the balance of the Accounts Payable account in the general ledger, in- cluding any accrued or unpaid payroll. Graphic Chart of Operating Accounts Form No. 18 is a graphic chart that will serve to give some idea of the methods advised so far as operating accounts are concerned. It will first be noticed that the distinction between the Grain Department and the Mill Department is maintained through the introduction of two ledger accounts. In addition to the usual Wheat account we have a Cost of Wheat Sales account and a Wheat Sales account. The difference between these two accounts represents the Grain Department's profit or loss. In the Mill Department we have a Cost of Flour and Feed Sales account and the difference between that and the Flour and Feed Sales account represents the Mill Department's profit or loss. nae h ake yee re ue ; i ome ©) Ute i ony Rowe oa Like Pode Sr kage oa . Ye vote & of walvded done Se Se ees pete ean boa tougyad ae Ro acu Re eee areen af & 'P Ms hig “ rk 5 by * i ote Xa Fab ie ae * We hie: eta Hp” WSR) ere aE SE a ee WHat D Mise so AS ETL yY See ve Le Qik. ie ; » ” Dy ey : . bet LL @2Gd oat eae Gc eaiee we pool Pree Bivens (ogied gf?) gokeseae mat | i) oe ae og sane Bm Ot Of = tate Pas “eae | ) “a pias. 2bkb4 ened) (wowbalenieboee ie Akan at Oe Ns et. es Re porelvided® cone. et pebiee ta ee itd ae Fee ee roy Oe inde 6 be Sane ae “ ahi Hy ee alt n tne He a nee pier titer | fot iva) 2 gee pe dog $i ag is? Mam hins’ i. ARE 9 By. gle patieatet a Ot RR Ra ; i — fin “ad f oe t. “et DAL ap 2, ; 1 Spd yes eee ein ke C9 aay fo od oo Yhap iek Fr - ll Si Cage ry a La a4 el oF yer OO mh we ¥ re “ee et ace ons G sade * yt aD J foe ces i 5) : a RUG Si, Oe PBL i t8oq by caste’ ya baidsi ue eit ok te PhO). bry. Feet), cee sit bee mo kivk bOFe REL y ay oat y obey ede tb eee TS oe toh A 4 a Te BO ‘sq rth. awa % iva eft auliei@a Ag ere et bo igi i ary : i 2 lodtia .penadiio Gant Tae sy” ae ; * ue rt). MhSal. Dir Peay peasy DRS yee papetie, 24g sey iia Lae Bo nbo rites if tom vices toh aaa ctf aa eee ete Be) eavisean sol ia sae" ROL PS tom ite, wheat: ‘eine ee Ce i aban Nard vote. te ews pe Se TOR emesis penne: » has ides? eo tated Oa eth lovey tay, 2aclowes Bers rheargs wnide’ Wash MI OLLI oth doyle Stam | Aaterls eethod, BEOmre Saree ine Pees ahd a eRe Las ao eck th FRAO OL cries rer A aie bi moral wrest fete drcts irate attend 4 a j La ys ebay geesid ane a eeMO vee STAID. ae, BR oe ae te dal nae Dd va = . : at a os id i 2 ita pe lan Pan Pee viet eny daw fad oy PH aes rete teehsamay sano oes ts ent suntan age supreme a ty BBS 1384 ana thoth wh potect wm Pema ‘oat cal ATOR Be he ee eg i]: “porate tty. 9 am | qin he | fiat ‘me G $LiM ents eh ashok) ie $4 NG the SA lasts. See SoAt.t weoy ted Coe eS ae he OF eee) Sp. Pets haiiens era dp (Say ane? wi wis 3 nie i The second point to be noticed is that the debit to Product in Process and Stock account covering the month's operating cost is made at standard units. The credits are to control accounts which are directly comparable with the related accounts which carry the actual expenditures. The difference between the stand- ard and the actual expenditures goes directly to the Mill Department Profit and Loss account. The bringing out of these operating profit or loss figures as definite items will serve to focus attention upon then. The carrying of the goods in process at standard operating units means that the Cost of Flour and Feed Sales account conforms strictly with the related daily cost cards so far as labor and expense items are concerned. fThe account, however, does not necessarily conform to the daily cost cards in the case of the wheat cost: Any discrepancy in this direction is taken care of by the bringing to market of the Mill Department's open trades as described later. The two accounts that deal with open transactions, namely, Grain Open Trades to Market and Mill Open Trades to Market are given on this chart although they may be left out of the ledger at time of monthly "cut off" if desired. As the ‘System is outlined in the following pages these items appear as part of the monthly profit or loss statements only. Determining Cost of Wheat Delivered to Mill Department We now come to the point where it is necessary to fix upon the basis of calculating the cost of the wheat delivered to the Mill Department. There are three ways in which this may be done; first, by pricing the wheat delivered during the month or on hand at the end of the month at average cost; second, by valuing the inventory at market; and third, by calculating the inventory at cost or market, whichever is lower. The simplest manner in which the charge may be made is illustrated by the following formula: Quantity Value Inventory beginning of month at mark€t.ccccccescccccveccccacs bu $ Maloaded during the month at coStcccccccccsccccgecsvdecceccesece bu $ MMM Leste dha Se uis ais’ eiaislc' odd s’ele aise «islahita's oleisie'aa ars teiw Wide svie's eae bu $ Inventory at end of month (at market). .cceccccssccvesecrecvcecers but: ee Difference = delivered to Mill Department....cccesccesessceesee bu $ The use of "market" value rather than "cost", even where cost is lower, is justified in the above formula only in caSe all other elements are brought to the identical "market" figure in succeeding computations. When the above valuation is made on a cost basis rather than at market that course merely entails the bringing out of the difference between cost and market as an additional element of the monthly adjustment to market in the departmental profit and loss statements described in the following pages. Grain Contract Value of Wheat Delivered To Mill Department We have previously stated that the wheat shall be priced on replacement value on the day the flour orders are booked by the Mill Department. We have further stated — because it is impractical in many mills to "earmark" the grain as going into specific sales - that the wheat shall be charged to the Mill Department in the order of the grain contract bookings. —16—- {? brea. og Luen Mo ‘eatery wey i Seca! taasdte wld) soi natiny nebet "Tart he Hd Sora G. iebl el TAR tegul, ELM ony WF) ahead! Oe FAS |" ste Sve ft yan - Ne Bis Bild Hh eartaga Ab a ah bogey ai ali Teh Sen By jg Ae ah Pqupays oa) aidan ¢ yada. ‘ae hy sagan ed are ath aaeriad” seca Peke wall edatatibavagy Laue: a 7 NY Gages mies bls aks POU y ci re Pees J {> ' ? AL &, i Aira hohande te ahaanliae pie ‘Brisanoys, eae test ae eae corey at {)\ REO Oo VL ORES eR alee Rt aba Pit e be Seok i ani Re Oa yal Pe TD) OHO GR: m0", SAUIAD Shy GOR ET Beak aa. Fee Hake Braga baokt Ba ated Ss gyegiat A ASG TN: oo an + ‘ hiviy agih pera: Aan bae ste ty Nae RAY ah Kheoe et ta \ : j ie « HE ry) hiPee. Guar ’ iOS: Faerie es Ring Ch Dame. Seay A Ch POTION, Att Lah oORete baa wa fh hd HAVO Jeoo whee a> eee tet ] tee PL " HD? er dh i La {4 ‘ i Lone th ae i ouc it? . Aa 4! sith qui a et: , TOW be ( 4 te Path an fosthdouey 4 V - joes 4 . q * t i a va “yy w e ‘ nit i? Oe cov eae Py) pf* BatwaeaD ‘s i LGM Bey ; tA Dart PR DE ORL Pe eee” Ve ere Pe eee ‘ging fo, Simm | | Cevages) #6 we .oang gate Diet wed Od, eVitd Bi ReO ee i brag Lita? haw? Da filet i bevey > eet | PF 4 ie ea « sah iy Ot aU EL OF Yraeenec ps aio wtdete ta.hdep Wet hada » TOP Ta a! Ley a hgrovifokh !sodw emf Be Yeowe eM it r . a i wed 4 ‘ 56 bs ! ue J or 4 Premceew.' ¢ , BOs O J we a f 'o non ‘ye Weems af py ie ME NRL |g AHR x Vera Wb Mata bie" See fie re Syaes Dae rh . © 4 » 4 y » f a @ a ly t L i ‘ Oey ee rmyWint wily .aet petealad we eas tise i ‘ SALE J ; act Like. Be aie dich a yea erees 3 vase poke Bs baa *-f@ere a a . ae © , * ‘ o Oog MARSA eee a : ers © eee ee wee he waa) whe Ae a ’¢ o* rm : Piel ee “ee (pau? ) i | y? “nae Shs eae ving ee em ; Yaak 4 , ih of hows A PRS Te TUR oni ct Bh eae tae bs ny + barons! Ise ad) Ie crcele, 2otta Jie) eten al elite wiierseks pn BIG DIRS MOO: abe hig OND: vine hse senha haat We Mee is edt eidte 1 ieed iraq Ane wR, bee Is taka’ addr | ‘ 4a hy mag phew Ja f is WO Be tah 4 bbw ony +9 gia th sf pai “grt wail Be *f Parone etd ah eee ake PmawTatie bia,’ (ts abe! bay! ‘ta otitisyey: natlana | Lp’ wir ith heclgwep sty | 4 Ths 4 ah, ) Ke Same Ras Lida Bey NA ong ie PM raw 8 ih Rene maths "ssa sg ed Pacer i A 44 Er i on ees | : mn ‘i tits ih d 1 iy rid) ee cum ioe 4 f met ‘ in OMe iN ; +s ven’, 0) ‘os UN SRE ee rea eta yy hare! Tie veg ate In ordinary practice the grain contracts will represent the wheat equiv- alent of the group of flour sales made on a given date and to be manufactured from & given milling mixture. The total amount of wheat delivered for the month, then, will be priced at varying amounts, taking each contract in order of the booking date until the amount delivered has been completely covered. This procedure has already been discussed in connection with the Grain Contract Record, Form l. Product in Process and Stock Account The Product in Process and Stock account is a controlling account for the mill. It is debited with the wheat received from the Grain Department at grain contract prices in accordance with the booking order of the contracts. The off- setting credit entry is to Wheat Sales account. Product in Process and Stock account is also debited with the manufac- turing, administration and selling cost at standard units, the amount of the charges being determined by multiplying the total production in barrels by the units estab- lished in the budget. The off-setting credit entries are to controlling accounts for each of the three classes of expenditures; that is, Manufacturing Costs, Admin- istration Costs and Selling Costs. This account is also debited with the containers used. Prices are based on 98's cotton, in one thousand lots, plus the current Federation differentials. Cost of Flour and Feed Sales In order to determine the Cost of Flour and Feed Sales it is necessary to establish first the inventory value of the flour and feed on hand at the end of the month. There are three figures on which the inventory may be priced; first, at cost according to average grain contract prices plus standard units for making and selling; second, at market for the wheat plus standard units for making and selling; third, at cost or market, whichever is lower. Clears and offals must, of course, be valued as well as the patent flour, and the simplest method is to value all at "market". That is, patent at "market" for the wheat plus standard units for making and selling, and clears and offal at market less the standard deductions. In cases where the stock is valued at cost it merely means that the dif- ference between cost and market becomes an additional item in the adjustments to market value, which are an element of the departmental monthly profit and loss statements. The value of the flour and feed inventory becomes a credit to the Product in Process and Stock account and the account is cleared by journal entry into Cost of Flour and Feed Sales account. The difference between Cost of Flour and Feed Sales account and the Flour and Feed Sales account represents the Mill Depart- ment's profit or loss on closed transactions. Monthly Journal Entries The monthly journal entries are outlined on Form 19. The first entries cover the budgeted fixed charges and reserves and take care of any splitting of general charges between manufacturing, administrative and selling expenses. The final entries deal with the controlling accounts and cover the costs of operating as established by inventory, etc. This list considered in relation to the Graphic Chart of Accounts, Form 18, will give in simplified form a clear idea of the general accounting plan, . eg Ny a OV TS: PAAR, Oy Kae Re sie ey Wes ; Sitaicw aleve’ Sut ate Be Maa ale eee AA UK Ua puaRmal us vb wis, faeces acids Lid 93 HMR aA nhens'g Pp WOeM ood: OMT OD. SARA Ri “eae oF tae Wht iss SH (oda chy ren : 1d CE Od rR ype Teava gv {yiehaniou heed nately Bahan st Lede d we TLR "hoa a ope ee Shiites Bits. Uw ROE utiiig & bib! iy : he y . ‘ seis A 188 J \ 4 bat Ww ’. me ie st ' %. nie" Se) Se eae regs Ie tee ‘enn an : ; F Pi bee de> 3 Sitio eee liee Bar piss es "§ ay bee A thn Ree per ehh of Md D rh er pa x ak, Altai oy ge 4 y »* wk * Pe An he RRA ‘ Le | A S j te APS stideh o¢ ie! #2. Gage 4 4 Gy AB? . ei . } "4 4 , - ; fee mere iy i329 . Task | , Ae by. ps a yay. pie 80 Lek avelk hos : ae Che YAR WVL OT oe | Ol ALE: toe eee . . . Liood G2av) sae eee Row ter ES #22.ne ORE Voto Tiw SOs. Bey Mae: as ea ED ee EMO Lh F000 “eas de ‘Siew i % L ROO xt De Jex ttn" J6 the vey ei Jord, 3h wie Ler, #eA nk kes bo bey OLS bee y jCHa- ferns how saoe ; i : S eas er “The Seo J Sts Ls > Picy ots ol ea iy vad Lees Auten ere £% ant ‘Se eg ik (nels Bil Jovows ee” eis panciccngsty 4501 0 RD AG Wal om td RE ta, Snes alta wok de ‘be LD ee oa a Dee gee Sdemee vel rae Lae Swat’ Sites nae arte Pr die SI GR eee hato elmo Baie it Rag ay oa Ra? y Tt WRBe al sit imo “ty ‘poivtns Liars ee, WR ER OD ORD | Fithos, ema me Ream agents” inde: wh POI OTE es” Be ae ae foray mh het blag Wo Ty A Poe? oie, MEWS forth OM Sergiy vee. nh kLir300 em ER Me Ook Gy po i FG, Fiery ih Ban AiLeniga eta ue Bg ae, Vl eee Wired Silage Re, pee th 4: Profit and Loss Statements Form 20 outlines the profit and loss statement for the Grain Department. It begins with the profit or loss on wheat delivered to the Mill Department, which figure is increased or decreased by the profit or loss on closed options. The net result will agree with the Grain Department Profit or Loss account, which reflects only closed transactions. The open transactions are next considered and the statements show the re=- sult of the bringing to market of three factors; first, the wheat in transit (0.7. and T.A.'S); second, the open futures; and third, the unfilled grain contracts with the Mill Department. (In cases where the inventory is at cost rather than market the difference between these two valuations must be added to the above items.) The result of the combination of open and closed transactions is to bring out the net profit or loss secured in wheat transactions. Turning to Form 21 which outlines the profit or loss statement for the Mill Department, we find that it begins with the sales of flour and feed, and having made allowances for deductions, arrives at the net selling value. Against this figure is thrown the cost of the wheat according to grain contract prices, assuming delivery to be made in the order of the grain contract bookings. To this is added the manufacturing, administration, selling and container cost at standard, thus arriving at the total operating cost. Following this we deduct the value of the flour and feed inventory at market, thus arriving at a net operating cost which is finally increased or reduced by the variations between the standard and the actual operating costs. The result will then agree with the profit and loss on closed transactions as shown by the ledger account. The next step is to introduce the effect of bringing to market the open transactions. There are two elements to be considered; first, the unfilled grain contracts which have already been shown in the Grain Department's statement; and, second, the unfilled bookings of flour and feed. (In case flour on hand has been valued at cost rather than at market, the difference between the two valuations must be added to those mentioned above.) Finally there are certain supplementary profit or loss items, such as commissions, income from investment, and various miscellaneous items. The net result gives a picture of the complete operations of the Mill Department covering both closed and open transactions. In actual practice both Grain Department and Mill Department profit and loss statements should be worked out on monthly and cumulative figures for the period. (2) | ag velety foiiltau eds ,tetht :betehlencoe 6d of #3nanehe ons e186 eitomuaged eiatD eff 40% drtenateee: enol or seterg pe prey ners doldw ,facwitaqe? £Lim eds ot bevevhfen: seedy wo ecol 1 SEomMm, tery eth .enotiqo Begole ge aaer to Shetd edt yd hbeaeeteeh ae B Efoeliot oldw ,savonod ctok 1 Pitot Sagueroqed oleid eee aay civeat bos ,heot bas welt.to gelec eff Kriw entged of tad Gary ow > gatavens ,uecing doatiads aiaty oF gabhrooos seodw en?) Fo sa00" ott habhe 2k cid? of . .2eetidood sorties gliew off to teSta eis. oe oe .£.0) dlecet? of teodw of? ,sarkt ;exodebt sods to seadraem aa eee sitd of ef auoltosansiys henols has ceqg 26 molfnaidmoo esd to, iam Om a ong) a2 itt wote eatoemessie edt ban bovebbate® teen OTs anottosenatd meao i is yates ts ¥ efnetsnoo state beilltias odd; ,otiif oes >oemutet nead eap, ye std i ‘ad? tedéat ‘Seon ta eb yrorsasenl ef? srede Beesp al): em Stag (,omes2 avoda eff of bebhs od. Yau atelveutsy owt geady »2noistosansth Peedy of Seneca eect ae 4 add “oh taomelave evol wo Sitong eat geaiisueg dokdw 6S eriol oF3 wish? fenissé .eulav gatiiee Jem eds 28 sevigag. .caolvoniep sot 8 e eed? ,htebhanse Ja L200 soaciatagd bas ear tt notserselmimbar ,goe y sean Baise segs intone fA wretnoval best bas <0lt edt to onlay ef foubeb or etdy Ba ile Ace oe F sreo torts ¥v £4; sty ? ¥ EE ba dori Wf fe0° urtt farsgo Jon rR ta gal. “ . meet edt .ath00 nnitereqo eee afd Die btabmada ed? neevved eis wi awods as enotisezaats Seaglo oo weol baw: #kloug ent asin geqo ets sedina of grigaind to toe%toe eth eoubowtah oF ef gage | sete i Joemetcte a’ dnendraged sled edd ab mpode.aved ybastles ‘oral gaed aad baéd no teOlLt ecne cl) «beat bas “Olt fo epciseod Bere im noolievlew ows ext? meeuted ssdetettio ett, jfedsam Je neds Beae + { .evods. shai iy 24 ows ,ameti esol to sitow yiaiseonsiqgne alesis ers evar tot ont amas tf ebetntintnie euoitey bate dneqgisevak wot), ° jaisgvoo tnowiseqed ILM ad? Yo eacliateqo afaiqmoo edt 20 etudi o | -eqoiicqanand 1g ‘shh © es hie $itera tuomitsqed LLIN baw Puesmeteqed aia seal entte t . t uotmt? evitetimus fae vittnom no tie ida ood of CONCLUSION The main structure of the uniform system has been outlined in the preceding pages; there are, however, certain supplementary features which may be of interest especially to the larger mills. We think it unwise to burden the Manual with a detailed description of these supplementary features because the needs of individual members differ so far as these forms are concerned. We will mention three of them briefly, however, in order to indicate that the Federation is in a position to offer suggestions along such lines. Wheat Premium Analysis The mill that grinds a variety of wheats is likely to find that it is "long" or "short" by grades, and as the premium for cash wheat varies by grades and varies from day to day, it may be advisable to analyze each day the effect of the fluctua- tions. The procedure will be to build a record of the quantity of all wheat on hand and purchased to arrive, tabulated by grades; together with a statement of the various grades required on the unfilled orders. These two statements bring out a series of daily balances showing the "long" or "Short" position by grades. To show the result of premium changes all under-sold or over=-sold wheat will be calculated ‘at the amount per bushel of the difference between the previous day's premium and the current day's premium; thus leading to a daily statement of loss or gain due to premium fluctuations. An example of the method of making daily wheat Be ae analysis and of the form used for this purpose will be found in Form 22, By-Product Analysis In building the daily cost card it is assumed that there will be a bal- anced condition between the sales of patent flour and the sales of by-products: This balanced condition will not always be maintained, and it is advisable in many plants to have a running analysis of the figures both as to tonnage available according to standard yield at cost card values = and as to sales, with assumed cost card values compared against actual selling prices; thus leading to a showing of the loss or gain over standard by-product values, An example of the method of analyzing by-product sales and of the form to be used for this purpose will be found in Form 23. — Flour Sales Analysis A flour sales analysis will of course always deal with quantities either in totals, by salesmen, or by territories, branches, etc. It will also deal with selling values, and with gross margins or with net margins per barrel, in the way that lends itself most acceptably to the individual member's needs. The purpose of the daily analysis of wheat premiums, by-products, sales, etc., is to give the executive a daily showing that will be up-to-date, detailed and comprehensive. The cumulative effect of such figures is in many cases now known only at the end of the month when the results are bulked or averaged in the profit or loss statement. The idea here is to show the figures in such a way that they may be scrutinized individually and promptly and thus lend themselves to executive control. afi ber arty i a fie anc met EYE At ny hy ets means 2 of. yam sold gowwseek Magan o Legare aledaee: retrained ®# iden. Lael ee mebuet of) eabwaia- #2 fei if pee Areatad, pi a aon alt etvaced geteteet TeNMelegse eeeHe: To oktq dem aig’ % erie nolice Like of. iberrrans 2. Oe Oirte'’s onert Ag Tis & gn MATS Of Tehlteoq #4 U2 BL aOBTaneTsT acy forty afpokbat oF 2ante ind ge | . | Berke thee, ite. ft - endaas - + a * me . y + , * Lees ak pt te 1f YLos/£ et atpadw Fe ytetaey . , P Cray t J ae i “Ot cuiitara eff >. a cat ~ ’ if » + dj 5 = @ Des: ; or ‘ SUS ONY Fate O »LanMsves re . ‘7 to trevoaet 6 Bilset a3 ne tite: srbeney O72). Ya. a is atlw sedi@enot -avharm 4d betalodad’ ,avikete an nisi vy me. fy bre ? ‘ - Bie ze ed 3 3 ’ > ae 487 a : pins » * i "0s" (96 ‘gng,.” at gietwod % # k i. > ay Hi j i S68 Bw ere seal ; { “tT 4 pe Bed eee, ens aed . : Br tet " 2 ai ia ¥ : i ™ W } 5, 44 é B 4 ee ts Sui a ; * mint igre we 4 ih Rolie td Beethem erie te eho ‘ a ia " & d i oy ac : Tin; we Bi ny : Bat a05' 8 98 ditw gro? fad? baguanh ef Ji Suas tuned 2iiaw wae ar 10l PeGy shteihoig-vd ‘to caiee eff Ses syokt tnesad to Betas etd aneeted Hokie vier ui eiducivba at 2t bas , beatin hale ed. evyartia tem Lite aotst Of smi iotgpsaA 4! leva omen; v2 ea. Sfoed pinning guy to @feylene pe el fawiay o1a® thon fheavaes atie gf Ri ae oF 2B San = gasilavy Hres,.teas sacl Mo a20t aft te antvode o oF aclbned ‘aged ney iq naliier Isules ¥ entev: dumboignyd ia | nateie ealiiionep déiie faeb pyowle sanes to side @leyians aatnn 30d . (aie fg9h tle ilblw 3Y sie ,gedeneid. .celrosttig?) va) to eee ww ans ol ,terted soq atigtens fou dife te salgiea agotg) dake ‘hewa ‘ ot hbéea t* sods a8, Lauhiv 40s £ git Li yidas¢esoe 130m | eles ,Riotihbow-vd wanes Lena ia faery Ye efayteaa viin’ ad? ‘te re or he Paice atinh~otqday od iiiw tad? gabeods vyiieh 3 evitaoexa wok ven zexag yous al et esrugl? secs to soatie avis loa, di tour ods. 02 bogsiewn so bedkud eae erie és ent morte dome y yre yet) tude yew ow coon wk eeruget add @nda. of Be fo. av heebxe Of peri grmetl? bret Riera Pak, a % , aay ‘a on c x An example of the method of making flour sales analysis and the form used for this purpose will be found in Form 24. Vital Factors of the System To those members who may hesitate for any reason to accept the uniform plan as a whole it may be wise to say that the various features of the system are not all equally important. The first and most vital step is the building of the budget, the use of the resulting standard units in the compilation of the daily cost card, and the reporting of the budgeted and actual costs periodically to the Federation. Beyond this it is also highly important that members separate the grain purchasing from the milling end of the business in order that the speculative profits may be distinguished from the profits made in manufacturing and merchandising the flour. Members will find that their existing systems may be supplemented by these particular features with an additional amount of clerical effort So small as to be negligible. In connection with the general accounting system it may be well to emphasize especially the fact that the contractural features of the milling busi- ness, both as to purchasing and sales, are of such importance that open transactions cannot be ignored if a complete picture of the current status of the business is to be secured. This means that the most vital factor in the general accounting plan is the provision made for the bringing of open transactions to market. However, this is a feature that can readily be adopted in connection with existing systems even though such systems do not agree at all points with the uniform plan. Finally the system as a whole is offered to millers in the belief that it is simple but highly effective and that it can be operated with an amount of clerical effort little or no greater than that required by most existing systems. 20 co), Lo ae en gs ieee ee eaess) we ta tte di oe Bee So. data Sy eer oeve ee ay * F | Y } ET saghya ¢ % a, ae “> - r Tae ‘de minig wos elormoge etedmer sant eon e jogiek: wlohe tit ois: at e4hinrq evifnlvoegs ef? tady wAte ah Adonland en? Ae Hdl ect yoke (basdoevem baa aa laid eee A 08a. SI LLOSq ante » Bx) wel LP ne ; fy ee i #7)! ine, 7 a7 ' wae a i 7 . WG 4 ' ot Ap ALY = sf 4 ie \ na f iv ; MAME hl? > vad! WR trae } : ; aR athe iv n : 14 a yee heals “Day | pat! bas elaplans sated "igre itt afidiis we bad te. dr uP re | sk wo ah baci ot S8hN Hog af et) Saas ty) no aetisne% BUG IR, ast sade yan ef) sate te on Foe to guibliivd ots at qare (este ieom bas Ferree wey rao ELioh eft to aetieliguoe what #2 te peabeee, baevcte pet et? e¢2 yilsvihetveq’ etsod gate a Sie be toghue ninsaeigqaus of Yiu qwevnre pasteind viet? s . ais at of Aa Linas ot cokes [ehinads te se pee oJ You JN moteve peliaiopes Lataced oss déiw aokse slitwe ait to eeautee? Laviidatiags of? said son) ets a ree dey! Seed soraivodal cevg to vin oe tee hens went rerioroue | OSs To cine sree ORD to) erutatg, egetenred Bae is OS TOPSRE hariy Seon ems Pat? ae Ie « “ — “2 y ~ re ne % Sore J * j Pik re rere i 9 4 4 ® Eo : a » e engin 2 vento, Gis Rs ei GOT ii Fe @ +THS. JOR led otf ns erelifa ad betel lo, th efom Be es 2¥e woe. TE fusoss me dtiw fetaredo ed- rao, 2) Jedd Bae ev ites tte, vite: (HMoreY2 gottuixne teom yd hondupst fads ged?) setset oe (Grain Dept Sales) March 1 4 5 etce etc. Total for month Adds Unfilled sales balance from previous month Deduct : Grind for month Net Unfilled Contracts Note: Set up separate contract records for each basic mixture, GRAIN CONTRACT RECORD Hard Wheat Sales Total Bbls. Flour Daily 1500 1000 2000 5000 7000 16500 25000 41500 25000 16500 BON ee Est. Bue 6750 4500 9000 22500 51500 74250 112500 186750 112500 74250 (Mill Dept Purchases) Mixture Daily Mkt. $1.01 1.02 $1.018 $1025 $1.0222 $1.025 $1.018 Form 1 Amount $6817.50 4590.00 9270.00 23400.00 51500.00 $75577.50 $115312.50 $190890.00 $115312.50 $ 75577250 v “i iw wvhead stone vot, sbtober fot inn” th it i My ej , 7 i ‘ : me ee a Deca a os Pate By v4 COV LAAT: CLA. fey . \ s) f, ea toatl fem fee at afe i gla i tea CEM (ne hee Iget ater): aie ; Rs | Lae i ay ‘s oe . oy ‘Te i nd ie ip CHa lion Jee! bytes, } : ih, Sie : eiadiein dicaidila aieamaiine ahthind ieee ieee) ‘ : P ASC elo e Bs “itt 2 se 4 ¥u bea oem Ce Orr Os 3 iy vf 33 OU ; ia . ‘ firey & ' Ji & q ; byt, f Ocoee . f ‘ if } ag OHOeL sf Ovoas 7 s Ye = Le S'S OG : i finde te Tas MILLERS’ NATIONAL FEDERATION Form 2 COMPARISON REPORT (CONFIDENTIAL) Re te eel lek ts vAddrostiues) fog SINT oA Swe van OO Re : Penner oixeiVionths! Period Ending... oe ee Bbls. Budgeted Output Same Period... ... ee a eee, See ei Bbls. Actual (Output Same Periods 03s ccccicat eos hee Budgeted Percent to Capacity........... I dead le Dees I LO Jo Actual Percent to Gapatity.:. 20 Jo SEC. A BUDGET AG RU AL COST VARIATION PER BBL. MANUFACTURING COST Amount OV sPer Bbk Amount Per Bbl. Gain : Elevator ee andi Of Power Charges Mill and Elevator Labor Supplies and Repairs General Manfg. Expense Total Manfg. Cost | SEC. B BUDGET AGUA COs: VARIATION PER BBL. ADMINISTRATION COST Amount ; Amount Per Bbl. Gain Executive Salaries Clerical Salaries Traveling Expense General Admin. Expense Total Admin. Cost SEC. C BUDGET AGITUAL GOST VARIATION PER BBL. SELLING COST Amount Per Bbl. Amount Per Bbl. Loss Gain Supervision and Clerical Traveling Expense nae Telephone and Telegraph Reserve for Bad Debts Advertising -- General General Selling Expense Total Office Selling Cost Manfg., Admin. and Total Office Selling Costs _*QOutside Selling Cost Manfg., Admin., Office otal 1 % Outside Selling Cost Branch Office Selling Cost Grand Total Manfg.,Admin. & All Selling Costs. * This total should not include Branch Office Expense. 99 Pe woos ee a Tt (SAPPHIGIIMOD) | a ae bec ul andi AOU Nl le a eld i Ih it ea Lee ia HEE Bria wiht r | hats smnee svete) Jeary aot AS red alee ee ra ¥OeQhD Af Imo LebHA x pabt eke Fs Ce ee a —_ eee A Ren At Ort A tee det » UR Wane «I SAG HOV AISA Y TED) IP ; TRAHaY ome | a _— a oe Pd roll ie es. | ae ae pa oan eees a wo. fe ash inomA 8 34% Tdtupirh, ro tne * ~ , gat me ea te aa ear } | ‘ Se PD AA CFLS IASG fo rece moore ; ; . ; t t i F Se ee een ee oe ‘ OS cee et omega 8 Se Ae | ONE wee ROS te oem OR I AB 1s pe nee 4 ange ~* q — ~~ . . “ bs | 2 ——a o es a ——— fy es Set ee ar ene ee Oe a Se ~ EE A 0 nena es oe o - nes ean ed —_- tens - ~ ne “a ht. 9 en) . Ws Me VE AVS ie SoMa a = ; — Parse very fh Rn IR NR Ee eee te tne = tere sa idkie Loa aL tee Tene LA RNAD hm ee oe an we terite thn gate mer eernatipemaon manny enhaste te! sf ee er is BE nh he aen endo JO Oe rat ore NRE MN hh may SON ELEN A ANN A . =e BUDGET OF FIXED CHARGES V ALUATION FIXED CHARGE ITEMS | TOTALS | AT DEPRECIATION INTEREST Cost INSURANCE 1) TAXES: ie VE RATE AMOUNT RATE AMOUNT MONTHS ee ee a ee = = ’ Land $ _ Storage Tanks $ : yo | $ Elevator and Mill Buildings | $ 4 %o $ . Elev. % Mill Machy. & Equip.| $ to $ | | ee achy. 8 Equip! ES A Oe eae ne Power Building $ | fo | $ Power Equipment $ to | $ Difice Building $ % | $ ee ee aig ~ Office Equipment si Jo | $ Auto and Trucks of %| $ Total Fixed Investment $ Rammer yee he i ey $ _ Estimated Total Depreciation . $ | | $ Estimated Total Insurance - General $ $ - Estimated Total Taxes - Real Estate | | $ | $ _ Estimated Total Taxes - Personal $ $ Estimated Interest Charges Bills Payable Bonds Total Interest Miscellaneous Items Compensation Insurance $ | $ Use and Occupancy Insurance $ $ Life Insurance - Mill Employees $ $ Life Insurance - Office Employees $ $ Auto and Truck Insurance $ | $ Grand Total 12 Months $ $ $ $ $ ; ' Grand Total 1 Month | $ $ $ | $ $ Analysis of Monthly Totals __Manvfacturing Expense Depreciation \ | $ Auto and Truck Depreciation b $ | Manufacturing Expense Insurance - General $ Auto and Truck Insurance $ t . ‘ | - Manufacturing Expense Taxes $ | | Manufacturing Expense Interest | $ General Manufacturing Ex. - Compensation Ins. $ —eneral Mianutacturing ©x.-Compensation Ins. | ; eae ae General Manufacturing Ex. - Life Insurance $ | PORES UR cA fe oma Rea, General Admis. Expense - Life Insurance $ | General Admis. Expense - Use and Occupancy Ins. $ Totals | $ | $ $ $ eVeyT rT] ani - 0. | etn — oer mn - ee we te ¢ ja a ae Abt ; Pei Ag “i aan sr ae, ; int) vs i { “ 2aza’t i stehiakh — Ae hee le (aan rune f reuial tan athe Sn ts = wri warms ‘eh WRI Pak ad hor : i ‘ . z cou ee a i ph. edie naiie [ oo So ; — Pie oorcae ePaper ae RPL oe Te j a “ - e Shek ate a J f ‘ i ey * ike inital iene thal cil | oes —— . ‘a -—~\, i B . oo ee ey misor vont | a ore, Po ~ oom ; | A t Neva % migherepuensencpenet a ee ne ne ee ' 7 \ ; : a athets - ‘ _ ——- ae i ee a enn EET ce cea ; 4 - - ‘ moaned or oe i ign on®, 2 a i : i % o~ spree F eer | a “ , Aim Db CF BuITIT THUOOOA BaMwexm rez. ‘cHACHAE eA a t secradcxd L290 bes ae £008 Berl? BOE etiagel bri eeblqqua €-00 . 30qeu) &OOE ence wenl 3008 aobfaioexgell OOS otteqrRs Iirvens) 1-008 canted bexid eugeqxt gmk feeretil 1-106 ‘ — 27a cere SOs fais — Somewenk &-Goe. - Yrredew? ~ nexsl A-OOs aeytedd tewol saqgeqx® aa xodal sotevela® Ona shine on meqna gad , oF 1 Form 4—A (Continued) DETAILED STANDARD LIST EXPENSE ACCOUNT TITLES (Continued) 500 Administration ponents Executive Salaries 501 is Clerical Salaries 502 " ? Traveling General 503 + . : General Expense . " 503—1 Supplies ' . 503-2 Stationery and Printing Ks " 503-3 Professional Services . " 503—4 Association Dues and Subscriptions * 503-5 Donations . * 503-6 Life Insurance bs * 503-7 Telephone and Telegraph e w 503-8 Use and Occupancy Insurance hs 3 503-9 Miscellaneous 600 Office Selling Expense Supervision and Clerical W " 601 : Traveling Expense 602 i‘. am " Telephone and Telegraph 603 - ° Reserve for Bad Debts 604 : n ® Advertising - General 605 a m : sae Expense Ws 605— 1 Supplies : ul. 605— 2 Stationery and Printing " " 605— 3 License Fees and Tags W - 605— 4 Postage " Wi 605— 5 Express and Parcel Post us Lis 605— 6 Mercantile Agencies n U, 605— 7 Collection and Exchange " " 605— 8 Credit Insurance " Mi 605— 9 Policy Quality Rebates Li) " 605—10 Miscellaneous 700 Outside potting Sc ONY Salesmen's Salaries 701 i Salesmen's Commissions 702 " Brokers' Commissions 703 . u . Traveling Expense 704 a i " Share Auto and Truck Expense 705 . " " Advertising - Special 706 e " ’ General Expense 800 Branch Office Expense Rent 801 + : " Heat and Light 802 " . " Supplies and Repairs 803 a " " Supervision and Clerical 804 és i " Salesmen's Salaries 805 : i " Salesmen's Commissions 806 : 2 " Traveling Expense 807 " " " Telephone and Telegraph 808 : " " Postage 809 7 a " Collection and Exchange 810 My ss " Express and Parcel Post 811 " " " Advertising - Local 812 " 4 " Auto and Truck Expense 813 ‘ " " Warehouse Labor 814 4 : " General Expense 815 Me . " Bad Debts (2) - R5-A - thenetsaad} A-d atod {heonisnoO) 22ITIT TODA RAMEIKA TBE CRAMMATE eotvalae® ovitovexd esiselaB Isotield 1 lexena) gatiovaxT ae ane eansqza Laxened ai Din gotiggna [202 ” * ul guijaivd dan yoanelisi2 9-808 " ea Mm Rooivie® ladolase'tost 3-803 tt ft ; aitoliqi+cudvas bas eeati mald¢pisonmed b-T0E ® . eraizanod 3-208 a a % sompisenl ath! 6008 ® * \ fqanzale? 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Bez ; Iaciiei9 Bas noleivieque I) ’ } : 4 = ~~ = — ee ' 4 f . 1 5 : ‘ ’ — 3 mi scolezinsod 2' aemeeis2i ee CE eI 2 el ee Se i en . ROR CRR Ete seen aie tenres # e it Senegxd gatfeverT —s dqetgsieT bas saodqefeT er ce ct a neem | =e er ee ee ~ egatnct SS A RC ARE me ee ——«; a a et erm a ee ae LE Pt i u : sgnedoxs bor aofttoei [od ——— yeo% faeorwss Das. efetaK} OA tt a i et - “ ~ - a a NE + a RS ce ba ~ } “4 on f ! = BIG = BE tektisyvbAai ET Nl _ _ ~~ oe _ - — —_ — —— = ~~ —_ ge ee ileal = onl eee — 5 ee | ee ee ae . rind haem tte aoa saisax4 SourT Das oTuE : 6.1 fi ¢ ee eee — — — —- ip _—— — a < — ~ ee ee we a eS eed even (6fle - } - Sg ee a& , t er oak eens vee = —— ~ - —oe = _ a —— on eters - tae ntenstiatase een - = Sr vCSeuU Veo ee nat eect —- Se _ ~ rere” armas —_ = = —_— s Ee apnea ~ ee ee ee ° -i 2 wi ~ we SE ee ee ene -_ — my —— + ae. _ — — = me ~~ ee ~ — 2 ent at fame S seiisie2 2 nemee lsd!” CONDENSED DAILY STANDARD COST CARD No. Basic Mixture Particulars . Wheat Price (Basic Future plus premium) Cost of Wheat (at Standard yield) Manufacturing Costs, at Standard Administration " : i) Office Selling " " " Gross Total Bulk F. 0. Be Mill Less Value Offals (Market Basis) Bulk Cost 196# 100% Flour F. 0. B. Mill Add Adjustments for Grading Bulk Cost 196# _% Patent Flour F. 0. B. Add Containers " Freight Add Outside Selling * Branch Selling Total Cost Profit Selling Price (2) -35- Form 14 Date 19 ls $XXX PED S¥ eer a Bee NA MP WAL, Sale GA Pe La BL. arvee Ne re ay te, ne a ‘e | i % at GAD T2099 GHACHATS RATES TERE, acca ele ee a . ivyes Deen PR Gay git . | eit | i i be s Form 15-A DETAIL STANDARD COST CARD. 100% FLOUR Grade Date Cost of Wheat, one barrel basis Grade Protein EENSY , Ree , ‘ea ) ee ee ee ie. 100 % Total ‘i Freight on Wheat, Incoming (If not included in cost of Wheat) cpa ate. FORRES Reig Lbs "Bb wba SOB eae Hel. bs at any Cost of Wheat & Freight Deductions for Offal, one barrel basis (Bulk price, feoeb. mill, less $2.00 a ton) Red Dog at $ Bran at $ Shorts at $ Middlings at $ per ton, per ton, per ton, per ton, Total deductions for offal Net Cost of Wheat for barrel 100% Flour, after deducting for offal lbs at lbs at lbs at lbs at Cost of Operation, at standard cost, per barrel Manufacturing Cost Administration Cost Office Selling Cost Total Operation Cost, at Standard Bulk Cost, f.0.be Mill, 100% Flour at Standard Uy tab gfe F& Fe FE SFE BH Card No. : Basic Future : Standard Yield Plus 4 lbs invisible loss $ $ $ $ $ SS Rg $ $ $ $ $ ’ ARPT BOOS LO ee a mre a an Lod iy rane vine pet waht ofaed ‘« Fe + ; PrekY brebease 3 ss 3 z qed . z —- $8 Ad L. 2 atts BEEN oe i a ; a RO MOORE: 5 Fae (Jeet? In tres hes abr: 7f iy mee b hile ghaad [a mid, ata iy A leo} 8: OOCS Bees , gz oo Fa RGL ert Ti. wa 15 il £ » BG’ 2 tu ai H ? ga adi \ setts ,«vold ROOE. Ilex ‘ uv ' r ” 1 he ta ly o. meet Amik ate had RS bine ¢ Py ig r at ig thei Pa Mah) Ay 7 j ' vt fee / i Form 15=-B SUPPLEMENTARY DETAIL STANDARD COST CARD For gf Patent Card Grade Date Noe Bulk Cost, feoeb. Mill, 100% Flour, at Standard, brought forward $ Grading Adjustments, one barrel basis (Bulk price, f.o.b. mill, less 40 cents a bbl.) lst Clears at per bbl. % lbs at per lb. $ 2nd Clears at per bbl. % lbs at per lb. $ Total allowance for Clears $ Standard Cost of lbs. of % patent $ Standard Cost of 196 1bs. of % patent $ (preceding item divided by "per cent patent") Supplementary Costs Containers, basis of two 98 lb. cottons | $ Freight on shipment, if any $ Total Cost, basis Draft, Carload deliveries, at standard $ Outside Selling Expense, if any, at standard Salesmen's Salaries and Expenses $ Salesmen's Commissions $ Brokerage $ Total Outside Selling Expense, at standard Branch Office Selling Expense, at standard Total Cost, at standard Priori» at standard e e e ° ® ° e ° ° e e D ° ° oa ° ® e ® e ° ° > e e ide pObling Pric@ 2 ee « «ese e tc eee eee cere eee eae ee es fa fF Fe FE HM a q 4) 800 Gate trata ra - ; a 6 ml i yt al oO . i. ee Rares Gt *S ‘Se Vtie® @ wa4 ee ee mee oy Me ee ear — ° - a i f Bars ee : s rea ; - * wee te is Pa ep egret em ome oyna ; as ” _ ~ Oates mavordt , Sabie le Fe. ,toLt BOUL gilt ae | BAGG Lepr Ott. 2 Piro fd#¢ np ctiteo OF se6l ELIS Peat cern ret a r o iG og aah 4 ~ wat § ty ea Ao 5 3&8 ie ae fr te \ ; omy Py) beg 1" “s T3480 ea Anrhod y ref cad J Righ 1 8 aR i ee 48 } ae 4 be : ' | eb Pg Tei) ae Vu Me i ; Ape we tows ~~ : * iwtose. .di ‘ i Py ais gy BP vy ae ot? f ‘4 ~ Orde tt cate ta ,nobrevwlies Bavlte) (iia sees ‘ , } a nn 5 : 1 aie 4 “i eet Oe = ew ie Men apne lien Lothemegnalipltnapeid tps latin Meaty re rer . : o/s jean ae | basbasse tn kom) St ama . Z peénneced: bee aotnatye che n ' PE Ane a asta bene Linco: f ie fy a. oe @ ; 2 Pantioats Je haabiabe>" wmrstog, ona Section Section Section Section Section Section sz 2 3p 3s 32:3 72 2 3% GENERAL LEDGER ACCOUNTS ASSETS CURRENT ASSETS 1. 2 Se 4. Se Cash Petty Cash Funds Drafts for Collection Accounts Receivable Bills Receivable INVENTORIES l. Ze oe 4. Se 6. Wheat Wheat Futures Closed Product in Process and Stock Containers Supplies and Repairs Open Trades Brought to Market FIXED ASSETS 1. 260 3. 4. 5. 6. 7. 8. 9. 10. Land Yard Improvements Storage Tanks Elevator and Mill Buildings Elevator and Mill Machinery and Equipment Power Buildings Power Machinery and Equipment Office Buildings Office Furniture and Equipment Autos and Trucks ADVANCES AND MISCELLANEOUS ASSETS 1. 2. Se 4. Outside Investments Advances Milling in Transit Good Will LIABILITIES CURRENT LIABILITIES 1. 2 Accounts Payable Bills Payable 3. Broker's Accounts Payable RESERVES 1. 20 3. 4. 5. 6. Depreciation Reserve Interest Reserve Tax Reserve Insurance Reserve Reserve for Bad Debts Reserve for Advertising pak to Ha Form 16 “ MLSS MCRL CRAY os CE 14 eee” bald D dined wat s o fea rive wire nit wo fon ah not peter .f cine BRO A., yh H) ite Tee Gee ae kx ny PAPA a aa i mode, Vy ay f a8 nny es * wt sf 5 | { 7 ith Tom59A4 ra " ‘TH SPIED ob atiaaR hos Bold quae a, , i ‘ ; tyre Bq | Pie, x Zz a” 2 Bs. = = -” S. 2 oe += ; nanibllchd edb vraag ise i / ' aredg en a ford i, (FO Rees) i é éduutT han soy eee i A OUQSUAT INS IM Oi A, CS SRAM SS ain Saan @ Vrpen, 2 evr. bLetyo PS Se Tiel aoodey fie see ® dieaastlt nk pid Dee rf : crew bowed al * :* eh hea T5%: TAT GAL Sgramid my 9g ne raids eiduyet gy Ot han a My eideat sLi205 ie « ti ‘gideint biguovek Bt 10 Xt, ee an | ertenos aaa int i ovensh Jee rat o OVER bob oul B yLee afl Ports jane ‘ | ated, bam tO 8 A GENERAL LEDGER ACCOUNTS (Continued) LIABILITIES (Continued) Section G CAPITAL ACCOUNTS *" 1. Capital Stock So 2e, bonad *" 3. Surplus ” 4. Profit and Loss, Year to Date PROFIT AND LOSS Section H INCOME " 1. Wheat Sales " 2. Flour and Feed Sales " 3. Freight on Shipments " 4. Discounts and Allowances a 5. Carrying Charges Section I COST OF SALES " 1. Cost of Wheat " 2. Cost of Flour and Feed: Section J OPERATING ACCOUNTS woven rayroll *" 2. Power Charges " 3. Auto and Truck Expense " 4. Manufacturing Expense * 5. Administration Expense " 6. Office Selling Expense *" 7. Outside Selling Expense * 8. Branch Office Selling Expense * 9. Manufacturing Costs *" 10. Administration Costs Sit. Selling Costs Section K PROFIT AND LOSS " 1. Grain Department Profit and Loss " 2. Mill Department Profit and Loss i de Ul (beatae seyaewel lh Boa, areepeaa - ob = a a = p+) és > va > Ps cx ghetarean Bruosas cor oy hw eos Loss aot +? bhatt ae RHE Cwe” of tHot \weed ba Pivot eb "% yan is Jun 25e-t tt. HRS ae a he Sait \ 4s wh, » nal ng veoet ier soloed Haat Boat. ps ioegicla | xP Ra. < UIRVYOLD BTS Ga ais 4 Ws ye Ss ee 4 a r: ‘ Pe Nr ers 6 Peco SEsant 818) OM Le Wee ek hag bons hes T *) JH95 s- : 2 : > a rs Se. BT 2: EL RD ah Dane Ws VT ay U ata aad es) - TSH: a alee) tolyaAsse bab 2g8. nfsed sek Lien ioe Cia Br ‘yRHEat HLs5's fy, uk riYorl sesmirened Lo flag 7 ? tL age w * ’ tes Date istic —40- Form 17 VOUCHER REGISTER a ———————————————————————— ————————————— —————————— SELLING GEN'L LEDGER FREIGHT L SUPPLIES OTHER GRAINS | WHEAT CONTAINERS |AUTO AND TRUCK] POWER PLANT NUFACTURING ADMINISTRAT'N = | — Zeid, Account |Acct Dae Acct Die Acct Dr. ‘Acct Dr. Acct Dre Acct Dr Acct Dire ‘Acct Die [Acct Dr. [Acct Dire Dat From Whom R ived i : : : 3 : : : : é J e om Receive Purpose |Folio || Payable | No.|) Amount No.| Amount No.|; Amount | No Amount No.|| Amount No.|| Amount No Amount | No.|| Amount No.|| Amount No.|| Amount CHART OF ACCOUNTS Form 18 GRAIN DEPARTMENT MILL DEPARTMENT CLOSED FUTURES MANUFACTURING ADMINISTRATION SELLING EXPENSE EXPENSE EXPENSE CONTROL CONTROL CONTROL MANUFACTURING ADMINISTRATION SELLING EXPENSE EXPENSE EXPENSE STANDARD COST STANDARD COST CREDITS CREDITS CREDITS PRODUCT Past | Rh Lee | } : 405 3 ke ' t \ “ , f , 4 m Tht <1 4 Pei GRANT | rae: OARORNTS) | iauy ad l 3 3 ra 3 “~ | | ath igang 4 | atari ‘ ; ; ; | Bilis aN | sind L oe ] : ahawity th, t: z " wee hemne © eee o2an 4: +napincnshlaniigaprinniniganshlatiie hair istaothdetia 230088 | | | el) yas | 7 t i ate teem et vee disarray anor yy 7 Monthly Journal Entries #1 Manufacturing Fixed Charges Interest Manufacturing " " Depreciation Manufacturing - " Insurance — General Manufacturing " " Taxes — Property Auto and Truck Depreciation Auto and Truck Insurance Gen. Mfg. Cost Compensation Insurance Gen. Mfg. Cost Life Insurance Gen. Admin. Cost Life Insurance Gen. Admin. Cost Use and Occupancy Insurance Depreciation Reserve Interest Reserve Insurance Reserve Tax Reserve This entry to set up the month's proportion of the fixed charges. #2 Selling Expense Advertising Reserve This entry to set up the month's proportion of the advertising budget. #3 Selling Expense Reserve for Bad Debts This entry to set up the month's proportion of the Reserve for Bad Debts. #4 General Manufacturing Expense General Selling Expense Auto and Truck i i i. This entry to distribute actual auto and truck costs for the month on the basis of actual services rendered. #5 Wheat Closed Futures This entry to transfer balance of latter account (debit or credit) for month. (2) j ~42- Form 19 Mw HM - » * i ( ) ae ~ v v: “ sy aval s oe. it ; au ve | rea % Cf ere8. re a ARAN MR RD tO) i ata ty : 4 7 hee oe he re rt ae ke i deh hy, ee v eae iy i are 0% & , 2, kG. ry i ‘i bela ace 1 vy A ¥ , Lh iA : i x 7 teovetal §— * gegtadd Ht x Holts ilostqged | % imiemed « eoamgeat i yitaqort —~ sexat ee ' fobdsivetged: x 2oaet seal. # “songineal aobisamaqugd % soneineanl eth | x sonmiuadl Oil A x Ss9aetbant vorsqiocd bre eal i | evrepel ao ha eee qviocen 4 ereenen a | iE | oh al? to motivogere e'dtnem eg? ap tue pe amen x 2ideq pet 108 4 edt 20 poltiroqo1ng e'dinom ed! of doe of | added het 4 ey oh | Ait “soot am odd to% ado wowed Pew otve Tevtes. evudixtet of % ‘ypotubeeet saat ee cae nae cae a es ae ag a a ed i i i i te f ore) a i A , ‘ es u % ne At ’ @ ’ i “7 Li hia - iy ar” i SMA Fae,’ y ry 4 ye Monthly Journal Entries (Cont'd) #6 Cost of Wheat Sales Wheat This entry to set up wheat cost for month as shown by detailed inventory records. #7 Product in Process and Stock Wheat Sales This entry to cover value of wheat ground for month, basis of elevator net weights, covering deliveries on the grain contracts — oldest contract first. #8 Product in Process and Stock Manufacturing Cost (Standard Cost Rate) Administration Cost(Standard Cost Rate) Selling Cost (Standard Cost Rate) This entry to set up the standard operating cost of the barrels 100% flour produced for the month. #9 Product in Process and Stock Containers This entry to set up standard cost of bags used during month on the basis of actual production records costed basis Federation's Package Differential Schedule. #10 Cost of Flour and Feed Sales Product in Process and Stock This entry to cover cost of sales tor month as established by detailed inventory records. #11 Manufacturing Cost ' Administration Cost Selling Cost | Ee By ¥ vy wits, . - « 2 ‘ v \ rac ts LF om 7f 7 ; ¢ mi ue s mia Ei ul Saree a ~ hed Sa fs al Gt - i ‘ ' £ 4 is > ; : A #! oat Ae iv « ; Toe ‘ NOES fis % Tad 4 Ate 5 r 4 et lk ae a) ati { . a oO satinreqdo Saapeaen bet gee $04 ‘ot: j PETA Set mot sour Uae wre ef Saylor ntasd bie iaupertod, Aprtinuta tte canary 6) | 0 hae We ; ue ' ‘a oe: i te as an Ci i " tr ae ' ‘ *4 3 Afgom WY Koos Jaen qlee exis Lotooes Wre Taayies ae 4 ‘s a Sie eee VON Fe aaiev caves ope 4 eixvevhiok. acbhyevio ~avtatey sen Ox etevit rose read ge ote ian fetet 280) ovetinnss ) (elen 2200 Atay bie Latin, Fad. SiCHaeBTste} y a Vr ants (9% fevtibety wwert POOL Biartewee 4 int sped to eaas pashan ty Bi jan Oe oe vost bce aoneifl nb 3 ee: ee rat | han oes erosy “yet antiga “4! reo 0 ee aah, veiraean, Monthly Journal Entries (Cont'd) Mill Department Profit and Loss x This entry to close actual expense accounts and absorb the gains or losses over standard costs for the period. #12 Containers x Mill Department Profit and Loss x This entry to close out (gains or losses) over or under Federation differential standard coSt when established by the detailed inventory records. As has been stated in the Manual, the open transactions cannot be ignored if a complete picture of the current status of the business is to be Secured. In view of this fact we are giving next below a detailed memo covering inventory method of open trades brought to market as also two type journal entries, with explanatory comments. INVENTORY OF OPEN TRADES BROUGHT TO MARKET In both the Grain Department and Mill Department Profit and Loss accounts there are shown separate captions of the items making up the inventory of open transactions. It is not necessary that these be set up on books in the monthly clos= ings: However, at the end of the fiscal periods, when complete closings are made, these items must be included. In order to illustrate such entries and also to further clarify the in-= ventory procedure we are showing herewith two sample entries with certain comments that we think may be found helpful. #13 Grain Dept. Open Trades Brought to Market xx P. & Le. Account Wheat 0.T. & T.A. P. & Le Account Wheat Futures P. & L. Account Grain Contracts (Flour Dept.) P. & L. Account Grain Sales (Customers) mM OM OR This entry to set up market difference between the actual contract values of these open items and the replacement (market value) basis at cut-off date, (This information will be used in Grain Department P. & L.) Note ls: These calculations may result in either debits or credits depending on the market position of the last cut-off. However, invariably they will be the reverse of the Flour Sales booked and unfilled, which are also revalued at the current market basis. Ah oh UN te! Pratl ve Miia Beit il a Os x _pBROR! hos 1 oxt restate a i as 4 hy: " A eds stones . sae ni paonwe suneqan fadtte- eiots oe a OT Oe et wT ies, hehehe Steere HOLee. weet io tort Yaoi Yo SaV0 CARR ees a0 mein) Pao aed es or ane i ldatae Sate “en la Ded Sieve Laas .ieoged Peecreval amg Nevers ! mep enoiLrebaans cere GP vera at, wf begate cied Fret pets ; yi Ah ats “Lo eee 2a ie om. 7e) esage te 2 air % ; ot yt wef rh ow Seat etay i em ae mercyan O4 H tele? soye to hortdee Yrete ) = a Pe A a, sen ede | ated BRAN OT AEGIS SO Bl RS SO SA “f - wi. #i Fort et neged TiSw be aa el PoE act od i fi LiCl mec a OTF, | aolicae - re saqeuh) woiom eit) eu 3 of @8 een) if visnieves Jom aha Pe Ors: #2 OL Oo RG isow ,Phediee Laeswdey, ect ta Bee ae, bok vend aus on ¥ . ' ' i. Muwsod Ggiebrerc site ieasltsos gigqmee ows SP Wemed, Bi keocie ae ee Cie “x wHOee ad thaws a -—r Aol & RD Beery. : yatir:) oY K heTUdON Pandy Jushowe “at (, load, —et%) e0 Cirdeeo pele Jekoodt “ah enete§ Oi) to Re, be) aire ohh as ; a Tash oA! ote red Romeo PTD, few: a. 0% OF ri Shegetin iain os ree UATE Owe’ soars be te) wonlae de (iw modeawiotc! nldh) 6 TAR Ve See he Atak (ev Late (vib 1 aempireage’ ‘saan a ae9> re “onhObnedg of i gues ‘te sebainé mods - ft ILEROd 9 git ed Ll tw yor) widelsiwad saver as Off 46 dal aven ail erie pi kty be Lie rene bis” 4 re eo ‘a ,) “y ee 0 5 “ 4 . > L Mi b ie A oe ns ‘ é ok ans ” c rt - * 4 \y | Cad ‘ BN brs mtd | i Being fi ta egy ewe |? F 5 i Pe % s , te Jt ’ ") ml aa, a Wee Sika 2 - ‘ \ ’ 4 ) ” ] 4 ‘ . * ” + } Moh t : H $ : 5 Wy = : é ae eT TAY oer tay : ’ i 4 4 ” * é ¥ “ * 4 Cre APUG ES payer ase] ‘ Ri Diet ~ —y Y ! NY ‘ i . at Gol ? ‘ SU atts 5 » 4 * * ~ * ’ ¢ “ i wearakoe. eh een A aoe = pelaoeiean ql aha ‘ ‘ Aen y Pin He piri : . i “ k * ‘ . * v ’ ‘ ‘ ie i M i ° of j a i pe AY 0 vii ied bate no hice ae 7 nanreieerce eda : } uy ¢ Ouran a ) Ae aia Sf ys payctd mage bh f J a J ‘i Ay A Perrier otek nine soot tia aes - Page le Gross Sales: Flour and Feed Shipments Deductions from Gross Sales: Total Net Sales: MILL DEPARTMENT PROFIT AND LOSS STATEMENT Freight on Shipments Returns and Allowances Carrying Charges Deductions Flour and Feed Cost of Sales3 Wheat = (Contracts in order of bookings) Manufacturing Cost (at Standard) Administration Cost(at Standard) Selli Conta Total ng Cost iners (at Standard) (at Standard) Month Ending Inventory of Flour and Feed in Process and Stocks Flour Feed Total Balan Total Opening (at market) Ss i $ ee ce s Carried Forward Closing (at market) con ihed Form 21 yatoud aioe Sa or Rn oem Re eb ae ein a yp ryan ina ay won nia EE ene tegen Ceca gle aah tae ptt i nadernet ga agen eee Sa aa Ee /Waraghd? feet ban | * ” ‘ 3 a “ Pagug ins: gD sn . 26 ere hs eevanvollA fam up ‘ eh Ka copied gag . “— i oe n * 9 ; enad 7 Pewee BE gl Mem aay Mpa ‘ ee hs, aaa | eg bout bie 3 i p Hernan thee etomidate.” tts trae arith te Malgiteeh nest cdiiae eet ai date mere. * be) ery _,(bvaSass®, ze) rub" “4 sr (brsba7e 3} 3005 sodas meat A! Nak bier ge 96) ght ae, We ee (frahast?2 g5) 110018 buh npecowt Bt hast bos aye pateolS ac tnedt s (tears fe) (testan fa} * + reall » * “a ° * ? ° * * 7 , * P , “ : { : { “4 i by: uw * ° * ” * » a * * 4 . Sh ie eee nen ter] oe catamaran ' 5 ry i-* h - ya aw : 4 >, # @ w &* «& g * © «6 © * «& " , j F be r iV A 7 ‘ * . . . 2 F wise 8:4 % ‘ * J “ = e r ; . ¥ u fe W o> * ¥ * 4 a ® .) “ iv i Py ’ wa" gt ; 1 ¢ 4 : ‘ i , OPN MR ARE ARBRE RO emt EON PE Re Om ON mer Stn A mia lt EW YR Sow rE tr ih eines Sarai me, ‘Page 2. Totals Brought Forward + Pet oor Variations between Standard and Actual Cost: Losses Gains Manufacturing Go et whee ee is Me Administration PR Vinh erg, yt. GEG 6) 6 76. here et Selling e e J e ° e e e ° e e ® Containers » oes « Swipe Mah ete Sa euie ta’ 6) ls Total Operating Cost = Closed Transactions Balance = Closed Transactions Mill Department Open Trades Brought to Market Opening Closing (at market) (at market) Grain Contracts Se eeeeeaemeat: 6 aise mceeeny wilhe Unfilled Flour Bookings etebce eee yee eo .e.e4 cle « Unfilled Feed Bookings ei e* evens e) Chet iad ie: \s PEERS Ser eis. Sake We te ouch ies. Balance Supplementary Profit or Loss: Any Misce Profit or Loss Items Dake: catia. 68 Total Supplementary Profit or Loss Net Profit or Loss Closed and Open Transactions 6 (2) ais. Form 21 ‘ie re Chad or H ’ ; ; ‘ Bhi |) 4 RT VTE a Mn : j 4 La \ . ’ . ; , MY Saeried |: ee: Me ee A 7 , } / i ‘ 4 ae vi > n 1 tidoD ToutoA Boe ptehned® adewie Re | aatad 3 aeseok fe) tae ‘ y y * © we my A * * 8 4 4 of ) i »” Se. oe « ao ®» eles & y yi ) + 2 4 * > 2? o's « é ‘ ? " ? 2 * 2 sT 2 - * ‘ ‘ an q) ee einer avin nyeimoncraieripiariemeet Toe mneas (me Dineen ernie Ae ae + i I s f A y nN, i 7 a pl i ) o a ? = “ eo : ey e ' a : enolsSosanes? Retold ~ geos. Y a SI OT ae | enoksonecatt Bee 4 O88) csleehvareyrh Planar whims omens rar NaOH lara La ance cU ERENT asranrulh AOiCieTaaah Hrytten trian mus teehtlen Sate toe ama ie 4 a OORT renee Sete + . A ’ , - aaa saviak eo? siagets & watpo ld Wakmagd a / ere {teak va) i toxiam Je) Ps Give) eta Se ere, sanideok tees ‘| ty uigy, 3k E . ? ‘ . ‘y } Ka - cae - (a) a oe le oo © oe @ a ; eamltood See pi i i dictiasdy Aelematd Se taeint a donc sent cori apie iedieriodagl L i o) x ° - * 4G eo @ © a @ ae ; r y x * ’ @ of Septet ed yes trereritenerenm ren a-a9sthvirgcnant tienda hrs atharmrethae nh aan apn hie dt iret Win phn fabelianneaig (eV iy th palpi et had } : | tea ao H Ok ) ; °° ww ** "2 +s ameJ I azo. £0 Sa DAILY WHEAT PREMIUM ANALYSIS Form 22 Wheat Wheat Position Pur. Flour Over Under t 40000 30000 10000 2 20000 40000 20000 3 10000 10000 0 4 20000 10000 10000 5 10000 __10000_ (ot ee pages 100000 100000 20000 20000 Premium Effect Over Under Premiums Loss Gain old New 1 10000 +15 +16 $100.00 R 20000 +12 +12 0 3 + 7 + 4 0 4 10000 + 4 + 2 $200.00 5 0 ee 2 Bae +0 pe Bins Totals 20000 20000 $200.00 $100.00 Note: 1. The premium change does not affect grades 3 and 5 as these two grades are in balance. 2. The Gain of $100.00 on grade No. 1. and loss of $200.00 on grade No. 4, are based on current quotations which must be supplied by Grain Department to Mill Department for completing grain contracts set up. 5. In case of changes in milling mixtures the entire volume of wheat and flour orders must be considered in order that this cumulative summary give correct picture of positions each grade wheat on hand. (2) -49- 1 Alaa iB eS CR i Tee wo cc Oi mee , rois feet teont Ae le meme a in io gemen tie Ree tee ee pobal | tavo & 1wOLt bhoe bio | Bzebyo OOBOL . 90008 goosr ‘e000! oe a ee eee ee ee Ei0P endl dae, Oe a OH GHHOS Coos A on600L “ . joetts aulonrt ti Re ' peod Bary iment raha i oe | eietieiteshiiied wot ane £0 HO. GOLe - Ol + OL 4 GOO f ) b -f- vi + 2 | 2 ee Me 4. y Q000L Ont eh = os pga mee Oe ee ms a mee ER, APTS ta Seite 0O.00f@) OO. Ooke 80008 -a0a8led ist: on share 26 00.0088 to eeol.bas .J .of ebary ao o0.0b88 to nteo iTS ms betiqgvs ed Jeng doliw esulistoup testivo 90 beesd org - 08 Ge ieiinen cietg gaitvelquoo act iromtrsqsd lua ot bheiar tia ra] ‘4 a ‘ a ‘ing his fh | 7 avivaLvasse sie tat pon at ‘rebar bean " jee 18 er » = } ee mu a i few bape ao Seedw tis A089 Ba idaiedi fi na ee ‘ ie +" cin | te tala oe p 7 abe , } hike hs 5 fi is rc m aos tj atl i ol ats a ee y om. , y ie be Pa j . va , ( , Bea m , ¥ ‘] ba i i a er? ii by i 4 Nosati it ali yet TG wn ay ie a) oe aa | a . Bhy ss i Lae . Form 23 DAILY AND CUMULATIVE REPORT OF BY-PRODUCTS AVAILABLE AND OVERSOLD OR UNDERSOLD POSITION * By-Product Available Bulk Cost Mill Memo Barrels Bushels Quantity Card Basis Value Today's Net Patent Sales XXX xXx xx x xx Add Grade Adjustment or Deduct Grade Adjustment x x x x x Adjusted Patent Sales and By-Product Available XXX XXX xx x xX By-Product Sales Today x x x (List of day's sale in this space) Total By-Product Sales and Average Price x x x Net Oversold Today x x x " Undersold Today Cumulative Bal. Forward Over x x x Under Net Position Oversold x x x bd 4 Undersold Loss Per Bble or Ton Gain n n n eo * Note: This analysis sheet should have separate columns for First Clear, Second Clear, and each kind of mill feed made, ise., Bran, Shorts, Mixed Feeds, etc. NURS) an var tate | hes wu pee) : jee iis byhenh an “a bent i by LY ae in KY. ue ae pb va ; \ | ‘ ae j i) mL a i) i , anh fi i) CUA, HATES on oY , aa ih | : P uy THrio “e 7} XN t y \ } ' -— =r, | ¥ mf. 2 Less £3 big 74 TT a i's ‘On : ‘a ite ‘ | a te | : | . 7 rae b ioe ot | | 7 ha bLoxwep ft) 7 5 : ; | é . cay , ae iF ye ai ee Che 4 a 4 f p 3 4 #Y 1b 4 hy Wi Shall i} io oD si Ul 5 ; mtr” Ai evayyt 8 i anelé ibs one ah re Per aor aheey Layim’ 2 ee “i able aaa ont’ Sia 8 t3) sia iid | 4 ir Form 24. FLOUR SALES ANALYSIS SSA Vr arto) MAING L Nine apace lg Sales Material Gross Gross Territory Barrels Net Bulk Cost Margins Margin Memo Mill Mill Mill Per Barrel A x $ x $ x $ x . B x x x ~ C x se x x D x x x x E a6 = x x F x x x x Totals x x x x CUMULATIVE SUMMARY GROSS MARGINS MONTH TO DATE Sales Material Gross Gross Territory Barrels Net Bulk Cost Margins Margin Memo Mill Mill Mill Per Barrel A x $ x B 8 x C x: x ; ; D x x f E x x ; F x x } Totals x x . att ‘ i] , A . a ‘ i ae SLE IRA Mota AOE a Oe ee oe i Le ey ast ew ep ‘ ‘ eee ey AVS A pe ae eH trp pew yk kee phere Sek tepaless vie : k a! t . | ti af LIT ; ' Ve ye now! rine 4 eK ae yin | eo eb ta ier mney Veh wre egmee he 2 ren. " ' ” 8 Y vi ke i ; : (3 7 . ny we oe eae Appendix A GENERAL LEDGER ACCOUNTS showing debits, credits and balances for each account. —5 Qa Al A2 AS A4 *Note: Aono ibe CURRENT ASSETS Cash Debited Credited Balance with all cash received and which should be deposited in banks. with all cash disbursed and which is represented by checks drawne represents total cash on hand and in banks, Petty Cash Funds* Debited Credited Balance with the amounts of original petty cash funds when established and with any increases in the funds which have been established. with the amounts of any petty cash funds which have been dis- continued and with any decreases in the funds which have been established. represents the total of all petty cash funds, Drafts for Collection Debited Credited Balance with total drafts drawn for shipments of grain and mill products. with total of drafts paid, either by being accepted as deposits by banks or reported as collected by banks. represents total of unpaid drafts for shipments of grain and mill products, and corresponds with file of unpaid invoices for Shipments made on drafts. If draft register is used the balance also agrees with the total of drafts not marked "paid". Accounts Receivable Debited Credited with total of all invoices and other charges to customers on open accounts. with total of all payments made by customers on open accounts and also for any discounts or other allowances made to customerSse With any bills receivable received on account. With any amounts carried to the reserve for bad debts. Balance represents total due from customers on open accounts, Petty cash payments from each fund are reimbursed by drawing checks for total of payments. The checks are cashed and the money restores the fund to its original amount, therefore called a revolving fund. ad IG Wen hh my j § 1 vi j 4 fast fi Bs : vi bf i +s , ' ; \ ee . , ‘i i ’ iJ § sg ¥ : ‘ ‘ C'iak Shia : oO Ose LEA Oh: oe ' eras hans Aye etl Wwe ae Nk { “ , : 4 = ’ : ty ; \ 2oee a PS Ay eps ihre Ne ‘ “uy ‘ ; ; ; ae } Sr NP ' ete evs) : Hie i. wi ¥ ine { . 2 Wy) + rae, ry ha BF =A O vA + . PS, fee rhe | 7 2 ba Ds Dale a REO : io 4 ‘ i F Om » t ¥ 935 ‘ 4 i s , f 95 Be ie e i (nyt fe f ae , £5 4 3 A) ue C4 — ; , , ae, i | ti f . * alae * r " f Pee AP een! pif’ Y ae | By oy eee Henin Cy ha ity, , » \ 4 oe 4 ri 7. oY fet 1 ova MF y D307 eee F : ‘ } & t > a OP aes A Lt P C des {vq ‘at pod TAM apa elie hoe Eee t of EY AS Ge TtSe eihn 5 ¥ 4 e f } ew) a i anne “F r : y ? * a At , PO Aaa care ‘4 (Z # (Ss a i? Prog 4 as 4 i , | | } : P MmUuial rae ‘Ys ; ¢ er ‘3 ‘> oA COROd G49 of GT OM da Se Oe Ree eee Be Le aie eee u ‘ : ay ere La VE ie oR (BF ioOte: Veta ws if . -? F ah ; : iat § i" F : - eve * fi ges a oat « i © tid +. * Le an : ied Ol 20 Se SER ied 2 | o'r TG) fehdus S .: Peeing i me " ; ‘ GNM, Bis Piet MMe Citi ai tet ee wore wrvelegder | TMNT BRS ees a a Petr tick yer, Pam eLe. ive wht: eeineto aft 1 ROS EAT Bo hei iol iyhtty’ abrir A5 Bills Receivable Debited with any notes or other bills receivable received. With any notes or other bills receivable taken back because of non-payment. Credited with any payments on the principal of notes or other bills receivable. With the face value of any notes or bills receivable which have been discounted at banks or otherwise sold or transferred. With any losses on notes and other bills receivable carried to reserve for bad debts. Balance represents total face value of notes and other bills receivable on hand. B INVENTORIES Bl Wheat (Grain Department) Debited with total of invoices of wheat received and unloaded as shown by "wheat" column of Voucher Register. With the total of freight on wheat as shown by "recap" of freight column of the Voucher Register and credited to D3, Milling in Transit. With any gains directly affecting the inventory value of wheat. Credited with the total of transfers of wheat to Mill Department. See description of method on preceding pages. With cost of wheat and freight of any wheat sold, figured on same basis as wheat transferred to Mill Department. With any losses directly affecting the inventory value of wheat. Balance represents inventory value of wheat on hand. B2 Wheat Futures Closed (Grain Department ) Credited with gains on closed futures. Debited with losses on closed futures. Balance represents loss or gain on closed options for the period. This total is carried to K 1, Grain Department Profit or Loss. BS Product in Process and Stock Debited with total cost of all wheat and freight; see description of method in preceding pages. —54— is fl . , ante th ; ‘e s he se DAViLVouet eSLABy Leer ewe oR, RO Sorute ame y ieevianes Olitd eee 40 ewtog yaa: ani C Aaa ] Y ‘ : , ; : Je ; y ¢ of ELI THE { ; LNT L's ae ; ; iS ed F ee SY | Arai? x wid JI ng GAArk 7 Wiis crew vel CRViGeS<’ . ; baal re wl 2 So TA Bawa oor?’ eat Tice f 4 rl - “ O) aaa 7s hisegn th woud i ¥ 1 wit Py 1 é Pryte He eaeer Lee. ed ra es ve a ie ‘ oct al ‘oh Oveede?s i] , ' P 9 Ta ett s Oe hs vr 1 DES Te eos le ee Pees. Lelok nin des tie) 0 ‘ » ty 7% “ f ny ¥ Cy a TE ul La 1a _ nie) | . yt tal fl iy : toy azig aot ! / Aas : “d en , S| i A ; "y ( to “ " f i ‘ ’ f ' ' 1a 4 + + J * | 4c. tt Pi A A t : j Hag ‘ 4 OE : ‘ peyys , 2 - ; oy ‘ U Oot ta 7 4 + FP: ” 2a raw... O a} | Skat 7 Ms 3,09) HRs rea ae ar = 5 © ; ‘ iy 4 th - 4+ tr ft O49) vos coie - fe a yo (hod Lo @4e taney? lo [atod ety ge ieee CRORE BLOG OAC Ce a: Be cet Fae teeny i y v : 4 ’ he 1 : 4 * e* 4 s 4 7) j j rt * Jit i 4 t ‘ 1 4 ee * iy uP i 4 if rt Bust Fre i W Lé % elas Pe D2 4) Leos > TELOOTER sone: Vind hl" i eA L@uw Ee <1] na ; aN eg ei ay eto sows} siz ae ia Pvwigs ae 7 st c * (vuentuaaqed: giao) feat . reer 6 a i : : eee Pele loa ei sy € i ' ; i i ; Bi ind OP Va oe ae Lora? betekan ma RVeCOL dd tw. Mierke Ol TOG OMY 20% ene tidge Aves ls’ de ere ig wees vet wee, M) efits) 708) Tea. a ea Be baditinn az apace Credited With total of manufacturing, administration, office selling, outside and branch selling costs at standard. With total of containers based on production records and calculated at the Federation list of differentials. With any other charges directly affecting the inventory value of product in process and stocks with inventory value of flour, feed and packages as of "cut-off" date: See description of method in preceding pages. With any other losses directly affecting the inventory value of product in process and stocks Balance represents the total cost of the goods sold and shipped. B4 Containers Debited with total of invoices for containers as shown by the "Con- tainers" column of the Voucher Register. With the freight on containers as shown by the "recap" of the "Freight" column of the Voucher Register. With any gains directly affecting the inventory value of containers. Credited with the total cost of sacks used as charged to B3, Product in Process and Stock. With any losses directly affecting the inventory value of con=- tainers. This includes spoiled sacks for month. Balance represents inventory value of containers at cost, plus or minus any losses or gains on differentials for containers. The gross loss or gain on containers may be determined and closed out at any time by taking an inventory of containers and start= ing anew with the inventory as the "cost" of all containers on hand. B5 supplies and Repairs This inventory account is to be used only when there is a storeroom and when supplies and repair parts are not charged directly to operating costs from "recap" of the register. The following applies only when the inventory accounts are kept; Debited with total cost of invoices of supplies or repairs parts put in stores as shown by "Supplies and Repairs" column of the Voucher Register. With all freight on Supplies and repairs as shown by the "recap" of "freight" column of the Voucher Register. With any gains directly affecting the inventory value of supplies. py a he M By ald ge i ao Bs" Wi .> Ph Boyce: nog sanbbehy no, overt Pyasaeesals TO ‘fagad’ any | ular Seompt hth to wel TOR TaLEREM ead AT} ‘Sots ee, i ros aevit ge a #oava0 swaniee aK teat f: 7ig8 A384) } | atvaty bos seca «) shored! to, FS weetoe® te af bavesttince fee ‘hae? aro "os Ger tey oan, fasts aie: soar gilGevorg ah Posvent. to eohvagess exe. Seheo tevurk off worl téetta witeetih Raneal vars sites ane stoot2’ bist sedoorg teh Vagbetg siaq~uide hun bom ehody end I geo feihad eae Bees a : eit 3-2 itoo TOT eaatovras Tov sasey erie »Tofeinoh redsdal edt So oeloo *etdares a en?) 20° “ances” ‘et} Gd ewotin ee eremkeddbo at Sia koeh et ee ee 1. Kf an gov at 2G. omysag * iigte rt” %, Vy as". ere ¢} mt 6 f - wr i sa ‘ * ty yy by et? P ri } 5 vitS ae Bie ; ; adits | VBR of heaears | baa extend Re sean’, Cates an? astm! boat . sHUOTE. bees REO OEE yy yodoeveh eft gabtoetie yiteetth aberad ene cae ‘gltoa tt atede belioge eebpledt sax2" Vanes eee RMS TO) Bie |, 9 . evencatate to opie yaatnevel Aras ne'er Cyaan oi efeiicereVilh a éhhan om detenl vere Bake 20] por Ys ) od vna ceentascioo 16. Hine eh Bees naeera ; MA vid ia ¥ is yee) Fe Beg eas iat 6 # Of L1G. 10 nog" oct e@8 ywtolmevnt edi driv wees ant: 1. Vel neue “bitin a8. ED ie sient & bee or sTote pe e ah ofedt cote iso heen od oe bs Jogooos eyhinevell oi . Be a ¢ : * Yteootth Lon weto tem era Bitaq tileqet Sag é atari: fers) : stesais 40% eds to rene itowt nia | 240k otn ateihoeia ved int vccl ark? norte ving sottegs antsszion i. ih. Mam BELEN, ‘Hagen. to ted Lagos te To, woo koy mk to Deeo “bates. Rite tag © *s Bre 6% ht 4 ar) ro criedicy ie. ¥ at Pets 4 Fivies a4 4 4 aust ie ote Om ee HR eh ey my | | mr . Lae | std Aa Sen waaye haem faacen® gsi) wd dvoth ea Crkaged Bay Pee Ke > siphon Cm dott f | ers gluon xe faint sae shin is) sir ac eee ag TO ular YoH seve on natinorte iter heute if . : 4 ) it ee Chey r “ae ' ¥ _ Me B6 Cl C2 C3 C4 Credited with total of all supplies and repair parts issued from store~ room and charged to other accounts in Voucher Register, figured at cost, including margin for freight. With any losses directly affecting the inventory value of supplies. Balance represents inventory value of supplies and repair parts in stores, plus or minus losses and gains on freight, shortages, overages and the like, The gross loss or gain may be figured and closed at any time by taking inventory and using the inventory as "cost" of supplies on hand. Open Trades Brought to Market (See Journal Entries 13 and 14) FIXED ASSETS Land Debited with all purchases of land. Credited with all sales of land. Balance represents value of land. However the matter of land values are largely determined by other factors than purchase and sales prices. The above has only a theoretical application, Yard Improvements Debited with all expenditures for yard improvements: Fences, switches, water mains, etc. Credited with any reduction in value by reappraisal. Balance represents value of yard improvements. Storage Tanks Debited with the cost of building and with any cost of additions in excess of any charges made to depreciation reserve. With any gains directly affecting the asset value of buildings. Credited with sales of any buildings or any buildings destroyed after making suitable allowances for the charges which should be made to depreciation reserves With any losses directly affecting the asset value of buildings. Balance represents the so-called cost of the buildings against which is the reserve for depreciation of buildings. However, the values of buildings are often affected by other factors than cost and sales prices and the depreciation reserve. Elevator and Mill Buildings Debited with the cost of buildings and with any cost of additions in excess of any charges made to depreciation reserve. With any gains directly affecting the asset value of buildings. | —56- 7 ! be ie eR + ; roan et vate im th A, (POF ‘i an ae Hat ayy baateties “Abou ¢ ae. ane aes ti ee is | taint owagay bode i nantes “Tae ei inte’ aD bi Ree vr Tgneyy M mh ieee ta STE SO Oi Like eit etd x Secunia : ‘ hw T OO PRRBN Dee weragt Coase “O ne Oy atte te” Colt o Vea what 26 BROL: Sear obey yee: wes Bee’: Re TATA ha! Wii Aas gral eovad goa ae Bake ie tA issinabns Sag, oS Seree? pats RAL LS ES Wieoo® n, WTO ene rite patijen. Regeecct, aoe’ tomy oh oe i on etek tT senmipie L2m@ pat geunt ) Reled ie sty g ‘ i ~" uf? sover7og ghaetl to: sulaw efmauodaew { i he adi ok ii eres ; ; sau: oxleretel lunes’ P ‘ - : j i P ti we ea at hie ee » Py ped! . eee ABS. Pete SG oan OY roan! FE WOLRE, Bea, me ae EY , Aig 5 i Pap BIS oe | a ae tofgomevorgol fray not seagtitaseaemte Gia aii Pee agert Sad Bete Bt od Pommard. we gee ~chiugmevrongnt Srey it. eucay eledaarres gS Roel hhhe We, tucd woe Ayiw, dey, nebhd Sod As eee) Sr ieee serait colialoenqed of eham tegnate Yaa to, ACGORG Lise hw Law fecen wth) witootte: y Li Gent h .hAe og iP a hing: PaO Ble cet wit te Clb hud yrs Ba eta ee ee tiguln. he Lite ewercle’ 4a27 ¥o% we abet, ae §ia# Lure gyn,” ; * “Tene Ss ata i nat @ o h§.. Cede bento ltud to steer Jomem adh wrth coe "i sDotkh Be minal: 88, ol Cotdy seclegs opal ied ons ti 2004 Soleo e, ante leaned peer es f ROULAY Had. tBVHv OR seRAhp t tid te aot eh pangs 4g: wrtegut ‘echt wae ee bie (Fens aust?) etesos’ Tate? , MG Selous: BHD Ta ete Aye DT bret tO. : i, oerwede ao lsate ib wae ial alec alee ak adolTibis Yo gos vite ‘igh. has “deaprh b Ltank: eOTOR RE tits er if. Di ha: Credited with sales of any buildings or any buildings destroyed after making suitable allowances for the charges which should be made to depreciation reservée With any losses directly affecting the asset value of buildings. Balance represents the so-called cost of buildings against which is the depreciation reserve of buildings. However, the vaiues of buildings are often affected by other factors than cost and Sales prices and the depreciation reserve. CS Elevator and Mill Machinery and Equipment Debited with the cost of machinery and equipment including the cost of freight and installation, and any cost of renewals or replace= ments which increase the asset values in excess of any charges made to depreciation reserve. With any gains directly affecting the asset value of machinery and equipment. Credited with any sales of machinery and equipment or machinery and Balance equipment destroyed, replaced or "junked" after making suitable allowances for the charges which should be made to depreciation reserve. With any losses directly affecting the asset value of machinery and equipment. represents the cost value of machinery and equipment against which the depreciation reserve on machinery and equipment is considered in figuring the current value. The values of machinery and equipment may also be affected by other factors than cost and selling prices and depreciation reserves C6 Power Buildings Debited Credited with the cost of buildings and with any cost of additions in excess of any charges made to depreciation reserve. With any gains directly affecting the asset value of buildings. with sales of any buildings or any buildings destroyed after making suitable allowances for the charges which should be made ' to depreciation reserve. Balance With any losses directly affecting the asset value of buildings. represents the so-called cost of buildings against which is the reserve for depreciation of buildings. However, the values of buildings are often affected by other factors than cost and sales prices and the depreciation reserve. Cie, Power Machinery and Equipment Debited with the cost of machinery and equipment including the cost of freight and installation, and any cost of renewals or replace= ments which increase the asset values in excess of any charges made to depreciation reserves —57~ bye th wa vied ae) oe by 4 43 J . I it ‘ j - . 5 fA. Pes “re h Serie ; as fear A Ce ee tue < Dik path weeas ae k | sf toe the SL pietss r » by ne ~ > ! of 0 ok ta et 4 ries oe! n i) om . re See ie Se 4 ‘ ‘i oa {i he he * I = jue ) ‘ i : ‘ ret Met * 4 : iF i : a * ' , . t rH Ge i 7 a ft ' J : ; \ r H 7) " ‘ , Th ? P my ese #4 ‘ s \ ul t - ; . +7 7 7 a f ; s a th 4 wos ‘ i Wire c: 4! si\é Le we 2 ie Pog?) 8 60 Tole te b'\\m j aa: . ee ‘ a | rh i oes) ants sia ; 29 of rye f iets Va 44% BO yoo ap’ gOettew i NES * os Credited Balance With any gains directly affecting the asset value of machinery and equipment. with any sales of machinery and equipment or machinery and equipment destroyed, replaced or "junked" after making suitable allowances for the charges which should be made to depreciation reserve. With any losses directly affecting the asset value of machinery and equipment. represents the cost value of machinery and equipment against which the depreciation reserve on machinery and equipment is considered in figuring the current value. The values of machinery and equipment may also be affected by other factors than cost and selling prices and depreciation reservs,. C8 Office Buildings Debited Credited Balance with the cost of buildings and with any cost of additions in excess of any charges made to depreciation reserve. With any gains directly affecting the asset value of buildings. with sales of any buildings or any buildings destroyed after making suitable allowances for the charges which should be made to depreciation reserve. With any losses directly affecting the asset value of buildings. represents the so-called cost of buildings against which is the reserve for depreciation of buildingse However, the values of buildings are often affected by other factors than cost and Sales prices and the depreciation reserve. C9 Office Furniture and Equipment Debited Credited Balance with the cost of all purchases of office furniture and equipment, With all gains directly affecting the asset value of office furniture and equipment. with all sales of office furniture and fixtures and any office furniture and equipment discarded after making proper allow- ances for the amount which should be made to depreciation reServee With any losses that directly affect the asset value of office furniture and equipment. represents cost value of office furniture and equipment. The depreciation reserve must be considered in arriving at the current asset value. -58— oh hieeacs aig THe Pieri diced potion We esas reso BAe Re: bal Cae eat Wet y a9 hot i shih inscatbant kite ge oath Odi ot des aS | ) OVE ae ; a, . \ 14s; 4 CHORRE I osc 5 RR tay het) dete Baler 0° CA ren) Welt ie eae if gOrwveleviceh’ aad: fedora Sorte ri ad, bagebteesa my yet Rd, ae | ete ME ah 6 tie Were SAC Oia ae ! BD kL Panga hh CM Aa SS dah 9 J a ¢ * of t ehh ny vad , Se gus a *% on ae el Py’ ey 17> etireer : ¥ > A *p i? i ¥ J 4 { 2 yy) BS We NY Gin SE BO: 7 ea 1 LVStag> (Ot eye Suet be Nel vet: Us t evrsiiy a Ly Bs S098 a wee f re! — ar. Sur St femme Lem yp i t xa 4 Kas ‘> a % ) oft ‘ ree a oyu ee ¥ - + evait SILO " 4 } 7 # . ey, “ed opi Vito to \tetaie Lie oe ieee ‘omit t teenutes § tripe Rint epee ae TN ay Mi lse Trips ue wy TOT, Sache hdres Mie Lyoontlh Sorte. eateoL) yin ike etnondivie ban oral) eet 7X j *70..¥o arta, Jets ea, yi C10 Autos and Trucks Debited with the cost of autos and trucks and with the cost of any additions made in excess of any charges made to depreciation reserve. With any gains directly affecting the asset value of autos and trucks. Credited with the sale of any autos and trucks or of any autos and trucks destroyed after making suitable allowances for the charges which should be made to depreciation reserve. With any losses that directly affect the asset value of autos and trucks. D ADVANCES AND MISCELLANEOUS D1 Outside Investments Debited with all outside investments at cost. With any gains when investments are sold. With any gains directly affecting the asset value of the investments. Credited with the sale of outSide investments at cost. With any losses when investments are sold. With any losses directly affecting the asset value of the investments. Balance represents the value of outside investments at cost. However, other factors than costs may affect the asset value of outside investments and may modify the debits, credits and balance accordingly. D2 Advances Debited for advances made for expenses of salesmen and other similar ' purposes. Credited for amounts returned or reported and charges to cost, expenses and other accounts. Balance represents total of advances outstanding but which may rep- resent unreported coSts and expenses rather than assets. D3 Milling in Transit Debited with total of freight on wheat as shown by "recap" of "Freight" column of Voucher Register. With any gains on freight in transit. -59— ~~} Ts ’ f a “ By . : raid. % Oe A yur B.S y “ + Wes if t eae eee by mk PET hy. : i bd ; , ou oF ut ¥ ats 1G Chey Rs Bae he Oy ’ sy a’ 1 mis 7 eUViISae?t yt ‘ i if - 7 , 7 : wat : ry on rh > ‘ reat . eo a ‘ : ‘ he PD O40. 10s Y. GOOD OLA? Tee lees q eG RDS . ¢ r ’ ee ry his oP a y ; ; : 4 is 7 iS 4 ; ; ‘ * J 5 re ren ae y tad ‘ we fate | $, ri tw rg " ’ > a [ i ; a ‘ rua Les w ARO 2 Se ; = ¢ i , . < 2.5 portale ' ® r .. t > i - i - % i i hay i a ry i id ' ; ee i ory “4 7 a ; 7f ' 4 f ~ * * 5 r ¥ " eoeS : : . ; r WwW sim be ¥ i ne . i) y LG oh bia : 4 " j f Per t'e Ps ft : : ‘ i : de i } ‘ ts Aas ; 4 t » ~ &, > . +f he ae eA Fiz vigetodeds 2 ¥ * rn" « f . ) a! i one | ar ge 1S Bere yes ¢ GF seaRtety Sy AaSteqet ve berrelet (eo terdese aoe ee 23avodds sedge tae Credited with all freight in transit charged to wheat. With any freight in transit which is not charged to wheat but to other accounts. Balance represents the total value of milling in transit in suspense. D4 Good Will Debited with value of good will acquired and by any increases in value of good will. Credited with good will charged off to costs, expenses and the like. With any reductions or losses directly affecting the value of good will. Balance represents the book value of good will. Deieheowew LT) TBs E CURRENT LIABILITIES El Accounts Payable Credited with total of Voucher Register. Debited with total payments of bills and invoices as shown by cash book. With total fixed and other charges included in Voucher Register but to be credited to such accounts as F 1, Depreciation Re- serve, F 2, Interest Reserve, F 5, Tax Reserve, and the like. With total of supplies issued from stores of supplies and total of repair material and parts issued from stores of repairs which are charged from issues and reports instead of directly from original invoices when supplies and repair materials were received. With any other items charged to accounts in Voucher Register but which are not received and billed from purchase creditors and entered from invoices, Balance represents the total of accounts payable unpaid, corresponding with the file of unpaid bills, and including any accrued or unpaid payrolls. E2 Bills Payable Credited with all notes payable, issued and delivered, and all other bills payable, such as acceptances of time drafts and the like. Debited with all payments on principals of bills payable. Balance represents total amount of liability for bills payable. —60— i oy aoe ‘ Heb a | saatye. SHA tH tot at ity Pee Pit | pe. i a | i ; hae ; ‘phy se ireen $003 ‘ sy) 9 Cie iro: at Sivcrce at galkitio Xo sore faroe ‘ect! cgunaey —— ; etodihet yas wd Wie pevinges Piae chee: 16 Ou ley abe, ye of tAe HOOR 10 ; vOut s @ wip £eetogee ),83do0 af Vio pom eeia thw eos, td Re 1 ant F ovlb- gapael w6 aellephet eit mein . Lhtw boow eS vi £ ow 2) OMe Pn ease aia Prete = ’ , + et * : 4 we? GY - dene reniiennaind wat NOpj tye ; ! oe ‘gir 25 j ' . : Ta ¥ ca yi ‘ - ; 4 v f C ; . " i : a AAT p| £22 . « d ri ‘ : . ~e ‘a t ij ‘ faTLI f mi HSER? 26000 ; , ' { & wi Lal wah ‘ ies abe a og Bisa) “i orrenok xet, vinegh f at 8 8 i : - ‘ pg ha n nal ¥ n 2 pe ea ie S| i rit sete haan esioda pert betead setiqase: To Segoe onda aan : iyo Hoe omg May . in doies f . Gyek 'S . ; ¥ : PAG { fl das etibh oh a aire Viki ch iy fl ; / — . : ba ew ~~ Pi 7 : : ae ie 5 io : a VA et J bg 6 ae ae ees We) Pb BD "LAL ‘5 fat Wes 1, 20 hfe hie roy Ruy, ray 84 AL res ee ¢ | . ari smepiowh won'h: bavetae 1s Mo me iergeets 9 he, MES SOIT ss twuoend 10 {azot: of2, esaacended , » 40 hawrtooe + Bolbiplent oan. eo hitd Be aa tenes te. ote athe ‘ ' | wile “Yen Sage ey er cartes p sTeviteb bon hauset PL ideved’ disven. ae Koby I wth: Li e ‘ | Wi Oe8, , Bias 2h a | ‘ hk Re UlntAIy 39 De ey 6) agg jennsatne nL bey pen - x *) i 4 ty pee} i Lieto LLP te afogtoaha we rsamerga Fin ithe Cece te ree ETL E eOr nothta: abe, ™, ston Leta yet oe bP ihe Bie he , nm , ihe Rare ae hi of, na 4 a brite E3 Fl F2 (2) Broker's Accounts Payable (One account for each broker) Credited with losses on closed futures including brokerage and com-= Debited Balance RESERVES missionSe With any payments received from grain brokers on account as shown by the cash book. With commissions earned on flour and feed sales shipped. with gains on closed futures after deducting brokerage and commissions. With any payments made to brokers on account as shown by the cash book. is the net amount due to or from brokers. Depreciation Reserve Credited with reserves for depreciation charged to operating accounts, Debited Balance, J 3, Auto and Truck, J 4, Manufacturing Expense; also see Form 3. With loss and adjustments on buildings, machinery and equipment sold other than those which affect the asset accountSe with cost of any renewals, replacements and extraordinary re- pairs for restoring buildings, machinery and equipment and, therefore, represented by the aécumulated credits to deprecia-= tion reserve. This does not include additions or increased values of plant and equipment which increases the asset value and therefore are charged to the Fixed Asset Accounts, Cu2,t0 0 10. With depreciation on any buildings, machinery and equipment sold or otherwise disposed of and credited to Fixed Assets Account C 2 to C 10 at the same values at which they were charged to the Fixed Assets Account. if a credit, represents depreciation reserve against the fixed assets, and which exist in the working assets of the business unless a reserve fund is established. If there is a debit balance it represents an excess of charges to depreciation reserve over the reserves made; in other words, there is no reserve but, rather, an unabsorbed debit balance. Interest Reserve Credited with actual interest cost charged to J 4, manufacturing; also Debited see Form 3. with any interest chérges paid as shown by cash book or any accrued interest allowed. ea a saa Tee PN wee 4 ASAE OME TOO YIU a aN ta Re GG) Ee , ; Mes t Da edd AY a4 Pee ! } ys ie : ey, a } By Rais ithe ogi ert we ae Pia uae aaa 7 } " ¥ G iv Fi ) " n, mA a ; NA ‘ (toserd tose 0% taus ous ont) atdawey atau : A te: Hore bas, exatedotd anthyioal eeuitiet: beeoid wo deunet dsiw amg leein Ba Jaguooos oo atexotd ninxa mos} Bevisoem etdewrvaq yne Byilt Hood Mage eds yd owerte eheqqivie eeler best, bus tilt oe beara énotee heme Pew bor egetexord aiifoubel ter le Loup iod Baeeio: ae ening atin seroieeghanco od Ed awdta) ae Javoeon so atedewd of eimai 2 tacmvad wae igew ~~ ‘ghd, ize0 | _ STSVOTE BOC to OF On causes fem on? et Ba evirgoen wom A | + eitumoor timteac of beyrais coktetpetdqeh 16? sevaeeet Hike aoe 2 Sh ——- rr. Ps a, —— oer : p a it MIST OF OCALB JOUNedKA Bokiutosn teat. & _xawit Dis O} ath &.G ; % fiigpcivpe foe yaenidean’ eactoiivud go atmetdenibs bre, eeuk aeag SEVER onl SoaTTA dotew seody vaady wetdse Bios ~O?t Yiaoiiioatixe bas giaswecalaet ,alewenet yea 26 Fa09 BIte eke Inenqgscoe oOusa Yienlosaw yeenlbiivd aniaeyest 101 .agieg ewiscetgdh oy wrthena betelimtoka eds ¥d $8 teeaeige? eot6 Teteny . beavsetmt: 36 wooigibhe ebiifocl Joa 2600 #int yeviszen gor eclny sJeven ety ocrsdteml doidw Saderwglape fas Joslq te) eoulay IMMOQHA JOccA Heald eds oF begrsds eta etotared? hes OLS of BD Sitomaliipea bus guaciforesd ,esali tind vy: 76 noltsicertqsd note Pete HOKE a? host there bess Te aaa aatwredly to Blioa suae yes soli ic eouley orieet of. +6 OL 9D: oF 8.0 wewoeed sInuenod edeezd S6xiF, off oF begiacio Fi = hextt eff fauhene eveoret solieivergeb atnedetges..¢ibeto 6 sk Shenlawd edd. Yo afekeR nuistow eft at fedxe aotaw bus 8798288 4 iidob sa gt eredts th ,beteiidates el Savt evaeset 6 Beelau woltetoerged of eextacdh Yo eauoxe aa @inevetdesd 31 sannied om gt ores ,bhtew veto ot ; sham eevregsx edd seve eyvoasa coonslead Sideh vedieggany oB ,tedtex ,sodevieset. bone Heri! we: td dood dase yd awode ag blag noyreito fenre tah von. iw aan " 1s Nay i nee i hs Wie. Sate yantays oe iiacer bd u of beguatio S890 fink tal toured jeer: uF mh 2 way Cae ea? 4 it ay, pt aN i! a) 7 tap PAF a) F | ey 4 ‘ f fH, 2.2 ~ ’ 4 . , an fig Pons ¥ : " ? A hs Spe oP ee eT ee ea ee eet ie Ue Wye i 3 fol | Ys A OL” Ba Oe Paiecg, ' ‘ ty WT iv! Almay { $51 | } F3 F4 F5 F6 Gl (2) Balance Tax Reserve Credited Debited Balance, represents interest prepaid if a debit balance, and accrued interest if a credit balance. with taxes (except income and excess profit taxes) charged to operating accounts, J 4; also see Form 3. with all payments of taxes (except income and excess profit taxes) as shown by the cash book. if a debit, represents excess of payments over reserves; if a credit, represents excess of reServes over payments. Insurance Reserve Credited Debited Balance, with all insurance charged to operating accounts, J3, J4, and J5; also see Form 3.. with all payments of insurance premiums as shown by the cash book. if a debit, represents payments in excess of reserves and charges to operating accounts; if a credit, represents reserves and charges to operating accounts in excess of payments. Reserve for Bad Debts Credited Debited Balance, with reserves for bad debts charged to J 6, Selling Costs, each month, also see Form 2, Section C. with losses on customers' accounts receivable transferred from A 4, Accounts Receivable, and A 5, Bills Receivable. if a debit, represents excess of losses over reserves; if a credit, represents excess of reserves over 10SS@Se Reserve for Advertising Credited Debited Balance, with reserve for advertising charged to J 6, Selling Costs, each month, also see Form 2, Section C. with all payments of invoices covering advertising as shown by the cash book, if a debit, represents prepaid value advertising charges over reserves; if a credit, represents excess of reserves over payments, CAPITAL ACCOUNTS Capital Stock Credited with par value of capital stock issued. a i t } ke Ms Uy “i Ml de herices his ,eousisd tideb 2-16 bisgerag 2 wink ainoseiqet ¢ -cousisd sibet s Thiteetwihi +) a Pesce eee mene mad ri — » = — a} 7 bosytedo f{aexal-sitord seeike ig agioosh: Jgaons } Boxet ddtw © M104 90% Gels 1.% ~ednsovoa gaisatege SLiow, sagexe Bas etd0nk Jqroxe) seeasy 6 esnemeny Lia Aste «100d ceag ety yd ovoce Ge (eexss * S ti Ji GROVISEHt TOVO Bieecrrag to seeks Afadastaet ~iides.e Fe susRonyag TVD Reviesest To apeotw ecnametqet ~ficer 4 * Ree, dG .5t‘.etnycocs gpaktiareqo of bapredé eonatueat Cis dsiw Bes .»o MTOU 208 onle Fab ¥ inge oft vd sgotla 26 angimetq somanvenk to ofeeaven Lin dele bed *t : . alld Pe hgh aevieest to sdeoxns nt elmomgny etocvenqet (tideh & a eons ied Seviszeet ussotertqot .cideto A Th sy afryooos anksateqo of sentate “arn 2 “ y y } . 1 , shitegyag to agetxe al etnueoos gaitaeisqe of Gegtats bas Pst aided Sse word hentetenssy cldeviecet. atavooon ‘eremoteno no seasol dtiv sQidavioses @Lii€ .5 A bas ,oldavieoes siagegoA: .a a 6 IL peeviezer xeve eézeol to adeoxs etnonerqgen ,tideb # tt enna eam e2Gceai isvo aevideet to aaeoxe aineterget ,7iheto i igterevbs 23209 gakile® .8 % of bextadto gabtissevha rot aviecet coke es & wioT 608 cafe .dstom dose vq cworia es anlélinvevis ada esoloval To aimouredg fia nike eXood dans pel? TS¥0, negiado galelivevba eulav hisqetg esaseetqet ,tideh a tt Senn tad Tove seviteaet to geeexe ainererqet (slhex0. 6 28 ;eevisess l : ir ainenysg Beis sbeuael Loose fostaey 2 30 > eater ‘= ath G2 GS G4 Hl Debited Balance Bonds Credited Debited Balance with par value of capital stock redeemed and cancelled. represents par value of capital stock issued and outstanding. with face value of bonds issued. with face value of bonds paid, surrendered and cancelled. represents bonded indebtedness of company. surplus, beginning of year. Credited with net annual profits from G 4, Profit and Loss, year to date, Debited Balance and with any profit of extraordinary nature resulting from causes other than grain operations, milling and merchandising. with net annual losses from G 4, Profit and Loss, year to date, and any losses of extraordinary nature resulting from causes other than grain operations, milling and merchandising. With any dividends declared or other distribution of profits to stockholders. represents surplus profits, and which exists in the excess working assets of the business. Profit and Loss, year to date. Credited with any net monthly gain as shown by accounts K 1, Grain De= Debited partment Profit and Loss, and K 2, Mill Department Profit and Loss. With monthly balance of interest on investment over interest payments as shown by balance of Interest Reserve, F 2. With any other gains due to grain operations, milling and merchandising and not included in accounts K 1 and K 2. with any net monthly loss as shown by accounts K 1, Grain De- ‘ partment Profit and Loss, and K 2, Mill Department Profit and Balance, INCOME Wheat Sales Loss. With any other losses due to grain operations, milling and mer- chandising and not included in accounts K 1 and K 2. if a credit, represents net accumulated profits to date; if a debit, represents net accumulated losses to date, Pek Ostet WAND. G:039-5 Dane aa wo to heenpetdehaeOabhaad. elute tiet si 7 7 « } " ve ih vip ty i & ‘ ‘ i ty a hi Denim Sede ceLhe t 7 ’ , ’ ¥ MUR es Ma phe iy Wha 2s .ord ey aa bak 4 ei « Py - ; + i} res Ba | ; i 1 i y base Se Bn 438A i) ne he F P « / , qu Ut a is gi) A a eh nage f Gite ayn s af AES ‘ é ase o Stk tu r* (irk deal wee ml HER PB EI) TG OO ACC RRM ES a a aaa £ | 4 ay Od put Aiov wartte Wi tg 4 P > f ; & Fey, eG Chet Dacstho ly sts \ \ seh oat ; 0) ; f om Jack Vid Wore posited RRO re. 4 ; Co «foi oe. Pendied ahead c . us 8 eine Oise a 4 ta - ‘ , ; i , , a) ' Yon gi ‘it ee tyses bee: } mee fh, 7 "ft feat ef Teo Weir diel ; é 8. SR ae oie NP hah are sod Bing, goat Sele ad 62 Bee bite dan etpataben fos 81 0p cot g eth i iine, O ga JdeO | Ore: Sai, a AE. Oo Aira ae Digi ar ue Died te le ‘et big: ) by i - t | A a ie : ; Ce ae oes y r ye "As Oo A) ae. a han’ : SO Phe Meer. apne! her ian tpt eed ty ow ea Av ma ie Credited with total billings of wheat transferred to Mill Department. See description of method on preceding pages. With total of invoices of wheat sold to customers. Debited with any returns and allowances made Mill Department or customers. Balance represents net sales of wheat for period and is carried to K l, Grain Department Profit and Loss. H2 Flour and Feed Sales Credited with total shipments and billings of flour and feed. Debited with freight on shipments of flour and feed as shown by "recap" Oren os With goods returned, discounts and other allowances made to customers as shown by "recap" of H 4. With carrying charges for customers as shown by accounts H 5, Carrying Charges. Balance represents net sales of flour and feed for period and is car-= ried to K 2, Mill Department Profit and Loss. HS Freight on Shipments Debited with all freight charges on shipments as shown by "recap" of freight column of Voucher Register. Credited with freight billed and charged to customers as shown by invoices to customers and charged against flour and feed sales. With freight on shipments to customers which is not charged to customers but which is also charged against flour and feed sales. With the claims collected from railroads on milling in transit. Balance ‘represents freight on shipments in suspense, most of which, if debit, is a loss; if credit, is a gain. The net loss or gain should be carried to K 2, Mill Department Profit and Loss. H4 Discounts and Allowances Debited with the discounts and allowances made customers as shown by deductions made in cash book or in journal. Balance represents discounts and allowances made to customers, This balance is charged to H 2, Flour and Feed Sales. H5 Carrying Charges Debited with total of carrying charges from "recap" of "Miscellaneous® column of Sales Distribution Record, —64— Ay LLin ay Gonteheusns rosin ee Rabid " Nels 4 . setae ih ' \ P De ral Bios ee satgugdase OF Blow Jaedw $9 eeefovas to. lates taawt Jasnsraged [LM ebom segnaeotia. bam acrigtat: Yaa TERS: oT ato Feua et HM OF Belvine of fom bolieq wt Tao To aeibo' son alvaeeetqes satod bos I iewl Yaesmreqed attend » “going beet shual She “enol? to eqgnilitd bae eimeugicke cetode tyiw hes, ¥d geoda ; He@k bas: tuelt to eimemgicde co soybec? dvi mas ‘ i H te > i by eo ue ae . Ye ‘ a Dy ve = A » on ay vert 4 oi " “ft f oF eben soohawoile seta hoa esntmoath .fhomriex ahoon arin y —-_ 0 pea i < i . ¢: une i ‘yu oe 30 “Genet” JOnS 8s &tenesgyo py 000 Yl Hota Ba ewes tego Od tenrads arivisge agiwW , ecard) golysitsg ( #5 : ry ri ret 1g ‘ > tet A ay i iz * mate ote oh “etyuey Lo meecoo: Sig ceas 1 } Ou Lee Ppt as ohae §.- se L Le >" Ph ‘ig kor + Fae | iv ba 5 J Hisio Oo Btetoisin oF eeotoval eyes Sore yi iiiw gometago of atuomiine wo. sinter? core e =r - 4 , > * \ ‘ ag Ey a ¢ = , ds Ge8 - a * . iS2. DFS "Eiitw M CR HOM ORL BL HOLAW Fu ayenoetene s2eian sf t 7 oe . ft f. Dew vy 7 “y iar 9 ¢ v A ae © oo ot . re a af . I BA de vk 4 » - fa ms . gt4 4 4 wisy Pm 2.0 21172 mJ o ans ais te ‘ } > fo % ¢ , j o0 op Me cc Uh oe t sf en Pee ie a Ps rar y 70 SOR oaineqane: al efigaytea mo sinker Leaps hi JEGAO.%L i: uhol aces fob. L SH oF bel@tas ed beads * e — Sap . ; 3-, a -~ 2 — “‘noomawe tia Bon WH oeode. ca ervenemo abe eoonaveila OAe atavopelb ent Atiw © Lamyol at co dood eed ah oboe mod soubes | Bis «4 hteno teu et, sha eponewolia hes etrmegelbh’ errene moet: sloles, beel fae anelt 2 Boe begwardto as eoualad’ "RUOA AAs Los tM" bo Tas oen® wave anatase eaieasge to. ftoa) a Tl I2 Jl J2 J3 Credited with carrying charges billed and charged to customers as shown by invoices to customers. With carrying charges for customers which are not charged to customers but which are also charged against flour and feed: sales. Balance This account should balance except for any amount which may remain in suspense. COST OF SALES Cost of Wheat Debited with total cost of wheat and freight delivered to Mill Depart- ment during period and also of any wheat sold to customers: See description of method in preceding pages. Balance represents the total cost of wheat and freight, transferred to mill and sold to customers. This balance is carried to Kl, Grain Department Profit and Loss. Cost of Flour and Feed Debited with balance of Product in Process and Stock account as estab= lished by inventory. Balance represents the net cost of flour and feed sales. This balance is carried to K 2, Mill Department Profit and Loss. OPERATING ACCOUNTS Payroll Debited with payments and accrualse Credited with distribution to operating accounts. Balance This account should balance as the total of all charges has been recharged on the basis of service rendered. Power Charges Debited with the total of charges to power, heat and light as shown by "Power Plant" column of Voucher Register. With fixed charges on basis of annual budget. See Form 3. Credited with the total of power charges to other departments. Balance This account should balance as the total of all charges has been recharged on baSis of service rendered. Auto and Truck Expense Debited with charges from "Auto and Truck" column in Voucher Register and with fixed charges on basis of yearly budgete See Form 3. -~65— V3. eegwito Selrrtes co i ne | bite " Rae od - : ~ . a Blk 5 ce Ee § x om ste tau > b OA Wine , ih Ee eee pwei.t Fi2g at ee bevy ind Haw vu 3 ‘ ays “y re on y aa r ~ ve Je AWA its y WET NE SF : PO TAS BARN FLAG DO FEE eT ~ ee side bey o Pet ne aK ese (i a ees . + ad y j La ‘ ' J i : . shee ~ ¥ vee J t aN it. ee %, ; rh eet o 3 , a + i a ‘ \ . " bn, A 3 ; / Cs ’ uf } ty $i ise PET " " ‘ 1 YoIneceee wet Tee tie) Te. : os ‘ x © ry 4 P. e x Pei f < ’ * Posé ee ti ¥3 hs" j 4 rs Sr yon Poor cea Shas eg it , ns 9 j eat . Pah z " ‘ e é “ Lia bp ee ee a n ; 4 “ Freer OY ea) mug Fh a ! &. She +5 Po ite A - Peemats ogi i ora © , L om | ns , pele AL ¢e ; Se 4 ie ke £ iit Rg oS. 7 i 7 nis ref =) ; WA 4 % ie we ‘ , a 1 Be Bs x 2 Oy he: ‘ -. ™ ‘ tere ab Any cee ; : 4 . kK ' > “Y ‘, ” 4 Ww , ' o ise are ‘" be + ° ct ; ‘ ; a + “ at ~ 40 poy a ae ay 2 (oy 2a ry - bey ie j ‘ ae 2 ‘ f he Ps ’ y pices a) ry - we 7 i fe ri 4 “ eS : * ‘4 e 4 ’ _ mY a . @ fils { eng r ’ ; ‘ ‘ < 7 pire ag ge fh Mi q o “4 ay. & ? ‘ * by r rl 4 »? "5 ‘ , Dis te i fine 4 : j aR. tee I «= PL =~ ‘ Bory Hey fH el } be \ a 7 & u sid’ ® ” * . “. / f ire i) ¥ é ry f pA ie sy a a Hy 4 ige f 5S) ° ‘ ’ ri fue = i 2 4 a} 7 Je ery. LORY 1 cp ee ts ay ‘eG a. c ! bs * ae yi ws Ee , wy Sy y gal \ Mm r + = abl * wd ue Bl vn wah wee PEON ee Ne eal co ho ela 1o. ao evado hee eee ae ree on 5 ee A * 3 f " rl wire 2 tee ie 9 SUS as SHES 0% ite RAVOk he sn 7oF et) eee ’ » f he sau get’ ang ae ihe nee oe ie” ee tm: ‘ah ieee Bae oe at by tht Cea 5 es eo) M4 me OP. Bie te soentlad Biivedes soaone Ble L \ Py ORG y ’ mA Favre Ny py © i ch Hetwloe, Bolivian) Soc Wd meee se) Resin Ahan) bab: fe » - : v , f Y 7 g v f x ‘ erg: |) faa fr gat alk J4 J5 J6 J7 J8 J9 Credited with total of charges to departments on basis of service rendered. Balance This account should balance as the total of all charges has been recharged on baSis of service rendered. Manufacturing Expense Debited with total general manufacturing charges from "recap" of "Manufacturing" column of Voucher Register, and with fixed charges on basis of yearly budget. See Form 3. Balance represents total manufacturing expenses for period. This bal- ance is carried to J 9, Manufacturing Costs. Administration Expense Debited with total general administration charges from "recap" of "Administration" column of Voucher Register. Also see Form 3. Balance represents total general expenses of administration for the period. This balance is carried to J 10, Administration Costs. Office Selling Expense Debited with total general selling charges from "recap" of "Selling*” column of Voucher Register. See also Form 3. Balance represents total office selling expense. This balance is carried to J 11, Selling Costs. Outside Selling Expense Debited with total charges from "recap" of "Outside Selling” column of Voucher Register. Balance represents total outSide selling costs for period. This bal- ance is carried to J 11, Selling Costs. Branch Office Selling Expense Debited - with total branch office charges from "recap" of "Branch Office*® column of Voucher Register. Balance represents total branch office expenses for period. This balance is carried to J 11, Selling Costs. Manufacturing Costs Debited with Manufacturing Expense, J 4, Power Charges, J 2. Credited with budgeted standard cost of manufacturing charged to B 3, Product in Process and Stock. Balance represents the difference between standard costs of manufactur- ing as budgeted and the actual costs of manufacturing for the period. This balance is carried to K 2, Mill Department Profit and Loss. -66— a i - . # os al hd \ vee brs A) home NF i} ee wt we te ahead Bd Be dado Dis he Las one abe ee lead: Se fereade deen ehOae Rae durvaen as el bond Deed naph — x: LAR” oe Pe eat kena nes BOF es ne Ose R kntoe arcane +h ae cae © : is Pea we Ah ee Lao ¥ Yo: comutes at ys td oe teat” ’ ; > CiOh awe OAs RENBAN TO lead. ae peg wade Ri i ‘ ? 44 q / ; ui ap REN A RANG De NO Sane Che ane Ei a Pe EY ee eat a PTR ATES OS a gh Le? 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