sub-departments, 265
textile costs, 396, 397
advertising, 217, 220
analysis, extent of, 211
applied (See subheading below,
"Rates of distribution, predeter-
mined")
building expense, 2a6, 237
production-center system, 289,
319
textile costs, 395
chart, 212, 310
Forms, 19, 21, 214-216, 312,
313
graphic, 407-415
Forms, 408, 413, 416, 418
classification of, 18, 21, 213
classification of invoices, 217
subsidiary ledger, 218
Form, 219
depreciation, 98, 100, 244-252 (See
also generally subheading be-
low, "Fixed charges")
account, 223
auxiliary equipment, 246
journal entry, illustrated,
107
machinery, 290
obsolescence, 245
production-center system, 290
rates, 247
schedule, 224, 234, 249, 253
Form, 250, 251
schedule, textile costs, 397,
398
sub-departments, 266
distribution, 36, 98, 212, 213, 225,
253-286
chart, 212
Form, 214-216
non-productive departments ex-
pense, 257-270
procedure outlined, 98, 212
process cost system, 89, 271
direct to product, 44, 92
sources for charges, 224, 253
distribution over departments, 99,
103, 104
sub-departments, 265-268
distribution over product, 98, 213,
225, 271-286
adjustment between actual and
applied expense, 212, 282-
285
flat percentage charge, 284
reserve account, 283
machine-rate method, 272, 277-
279, 287-298, 301-327 (See
also "Machine-rate method")
material cost method, 272, 281
percentage of labor method,
272-275
prime cost method, 272, 281
productive-hour method, 272,
275-277
rates, predetermined, 42, 212,
271-285
sold-hour method, 272, 279
430
INDEX
Expense, indirect Continued
distribution sheet, 29, 36, 38, 253-
270
Forms, 37, 254, 255, 258, 259,
262, 263
administrative expense, 260
depreciation (See subheading
above, "Depreciation sched-
ule")
fixed charges (See subheading
below, "Fixed charges sched-
ule")
power plant, 260
standing orders and supplies
requisitions distributed on,
224
statement of expenses, produc-
tion-center system, 308
Form, 307
stores department expense, 260,
264
Stores department expense ap-
plied direct to material,
268
sub-departments, 265-268
electricity, 233, 239 (See also sub-
headings below, "Fixed charges,"
"Light and heat")
equipment, 213, 217, 222
estimated cost system (See "Esti-
mated cost system")
fixed charges, 213, 217, 233-243
(See also "Fixed charges")
"account" illustrated, produc-
tion-center system, 320
schedule, 224, 233, 253
Form, 235
schedule, process system, 341
Form, 342
schedule, sub-departments, 266
gas, 213, 233, 239 (See also
generally subheadings "Fixed
charges," "Light and heat")
"general expense account,"
textile costs, 396
insurance, 98, 100, 213, 217, 233,
238 (See also generally
subheading above, "Fixed
charges")
account illustrated, 102
journal entry illustrated, 107
production-center system, 290
textile costs, 399
interest on investment, 240 (See
also generally subheading above,
"Fixed charges")
journal entries illustrated, 106-
108
labor, indirect, 166, 168, 213, 220,
226-232
accounts, 221
administrative (See subheading
above, "Administrative ex-
pense")
chart, graphic, 191
Form, 193
classification, 221
inspection, 226
repairs to machinery, 221, 226
standing expense orders, 224,
226-232
ledger, subsidiary, 218, 266, 267
Form, 219
estimated cost system, 358
process cost system, 343
Form, 344
light and heat, 226, 394 (See also
subheadings above, "Elec-
tricity," "Gas")
account illustrated, production-
center system, 320
account illustrated, textile costs,
394
machine-rate method of dis-
tribution (See "Machine- rate
method")
machinery, 213, 217, 222 (See also
"Machine-rate method")
depreciation, 244-252, 290
expense account, 296, 323
INDEX
431
Expense, indirect Continued
machinery Continued
insurance, 290
power expense, distribution, 260
taxes, 290
non-productive departments (See
"Administrative expense,"
"Building expense," "Power
plant expense," "Stores de-
partment expense")
accounts, 102, 268
chart, 212
Form, 216
distribution of expense, 99, 103,
104, 257-270
sub-departments, 265-268
office (See subheading above,
"Administrative expense")
account, textile costs, 397
"overhead" account, illustrated,
104
plant assets, 213, 217, 222
plant ledger, 220
power expense,
textile costs, 394
power plant expense, 98, 99, 102
account, 217
account, illustrated, 103
journal entry, illustrated, 107
on distribution sheet, 260
process cost system, 344
production-center system, 289
290, 319
prepaid expense, 98, 101, 217
production-center system (See
"Machine- rate method")
productive departments, 103-105,
212
account illustrated, 104
chart, 212
Form, 214, 215
distribution of expense over,
99, 103, 104 (See also sub-
heading above, "Distribu-
tion")
journal entry, illustrated, 107
purchase journal, 213, 217, 224,
253
rates of distribution, predeter-
mined, 42, 212, 271-285
records, 224 (See also individual
subheadings)
rent, 98, 100, 233, 236, (See also
generally subheading above,
"Fixed charges")
account illustrated, 101
journal entry, illustrated, 107
production-center system, 289
reserve account, 283
standing expense orders, 31, 224,
226-232
classification, 227, 229-232
distribution sheet, 224
distribution, sub-departments,
266
list of numbers, 227, 229
Form, 230
time tickets, 227
Form, 228
statement of, production-center
system, 308
Form, 307
stores department expense, 98,
102
account, 217
account, illustrated, production-
center system, 321
applied direct to material, 268,
297, 302
on distribution sheet, 260, 264
sub-departments, 266
stores, incurred before receipt,
150
stores ledger, 218
sub-departments, 265-268 (See
also "Machine-rate method")
supplies, 17, 213, 217, 221, 226-232
account, 81, 122
charged direct, unusual method,
222
432
INDEX
Expense, indirect Continued
supplies Continued
included in term "stores," 23
journal entries, illustrated, 106
posting from stores issued book,
138
process cost system, 88
production-center system, 291,
325
requisitions, 224, 253
standing expense orders, 224,
226-232
Form, 230
taxes, 98, 100, 213, 233, 238 (See
also generally subheading
above, "Fixed charges")
account, illustrated, textile
costs, 399
journal entry, illustrated, 107
machinery, 290
production-center system, 290
telephone, 213, 233 (See also
generally subheading above,
"Fixed charges")
tools,
production-center system, 291,
322
water, 233, 239 (See also gener-
ally subheading above "Fixed
charges")
Extractive industries, 91 (See also
"Process cost system, brick-
making plant")
Factory,
ledger, 76
controlled by general ledger, 74
estimated cost system, 358
process cost system, 328, 343-348
Forms, 345, 346, 348
records (See also "Records")
controlled by general ledger, 74
Finished goods, 40
account, 79
illustrated, 86
journal entry, illustrated, 108
process cost system, 91
production-center system, illus-
trated, 325
textile costs, illustrated, 391,
392
definition, 24
inventory or record, 75, 76
ledger, 77
Form, 78
Finished parts (stores), 67,
account, 86
definition, 24
Fiscal year as cost period, 22
Fixed charges, 213, 217, 233-252
"account," illustrated, production-
center system, 320
building expense, 236, 237
production-center system, 289,
319
textile costs, 395
depreciation, 98, 100, 244-252
account, 223
auxiliary equipment, 246
journal entry, illustrated, 107
machinery, 290
obsolescence, 245
production-center system, 290
rates, 247
schedule, 224, 234, 249, 253
Form, 250, 251
schedule, sub-departments, 266
schedule, textile costs, 397, 398
electricity, 233, 239 (See also gen-
erally subheading below, "Light
and heat")
gas, 213, 233, 239 (See also gen-
erally subheading below, "Light
and heat")
insurance, 98, 100, 213, 217, 233,
238
account, illustrated, 102
INDEX
433
Fixed charges Continued
insurance Continued
journal entry, illustrated, 107
production-center system, 290
textile costs, account illus-
trated, 399
interest on investment, 240
light and heat, 226, 394 (See also
subheadings above, "Electric-
ity," "Gas")
rent, 98, 100, 233, 236
account, illustrated, 101
journal entry, illustrated, 107
production-center system, 289
schedule, 224, 233, 253
Form, 235
process system, 341
Form, 342
sub-departments, 266
taxes, 98, 100, 213, 233, 238
journal entry, illustrated, 107
production-center system, 290
textile costs, account illustrated.
399
telephone, 213, 233
water, 233, 239
Fixed rate of expense distribution
(See "Rates of expense distri-
bution")
Flour mill, 43, 87, 92
Fluctuations,
prices of stores, 142
weight or volume of material, 144
Foundry, 50
defective castings, 147
expense, 261
production order, 50
Form, 51
stores classification, 154
Freight expense, stores, 150
Gantt system of wage payment, 204
Gas expense, 213, 233, 239 (See
aiso generally "Fixed charges,"
"Light and heat")
"General expense account," illus-
trated,
textile costs, 396
General ledger (See "Ledger")
Goods, finished (See "Finished
goods")
Goods in process (See "Work in
process")
Graduated premium system of wage
payment, 206
Graphic charts (See "Charts")
H
Hat factory, 55
Form, 57
Hauling expense, stores, 150
Heat and light (See "Light and
heat")
Ice factory, cost system, 12
Idle time, machines, 295
Illustrative systems (See under
"Cost accounting")
Indirect expense (See "Expense, in-
direct")
Indirect labor (See "Labor, indi-
rect")
Indirect material (See "Supplies")
Inspection expense, 226
Insurance, accident, 238
Insurance expense, 98, 100, 213, 217,
233, 238 (See also generally
"Fixed charges")
account, illustrated, 102
journal entry, illustrated, 107
textile costs, 399
boiler, 238
fire, 238
production-center system, 290
Interest on investment, 240 (See
also generally "Fixed charges")
434
INDEX
Inventory,
controlling accounts, 79
finished goods, 75, 76
perpetual,
advantages, 10
cost accounting maintains, 5, 9
necessity for, 75
raw material, 76
sheet, 121
Form, 120
stores, 118
physical, 10, 121
sheet, 121
Form, 120
work in process, 74
Investment, interest on, 240
Invoices, classification of, indirect
expense, 217
subsidiary ledger, 218
Form, 219
Jewelry manufacturing concern, 350
Job cost sheets (See "Cost Sheets")
Job order system, 13, 41, 47-52
(See also "Cost accounting")
Journal,
entries,
controlling accounts, illustrated,
106-108
production-center system, 311,
314-318
purchase, 122, 130
expense, indirect, 213, 217, 224
posting to general ledger, 130
process cost system, 339
Labor, 165-208,
account, illustrated, 95
estimated cost system, 359
journal entry, illustrated, 107
account, process cost system, 89
classification, 167, 168
cost period different from pay
period, 172
direct, 18
chart, graphic, 407-417
Forms, 408, 413, 416, 418
indirect (See "Labor, indirect,"
below)
methods of distributing expense
over product based on, 272-282
pay-roll (See "Pay-roll")
piece-work basis, 169-171
production-center system, 306
records, 165-194
accuracy essential, 165
process cost system, 166
purposes, 166
time basis, 169
process cost system, 167
time records (See "Time records")
wage systems, 169 (See also
"Wage systems")
Labor, indirect, 18, 166, 168, 213,
320, 226-232
accounts, 221
administrative (See "Adminis-
trative expense")
chart, graphic, 191
Form, 193
classification, 221
inspection, 226
repairs to machinery, 221, 226
standing expense orders, 31, 224,
226-232
classification, 227, 229-232
distribution, 224
distribution, sub - departments,
266
list of numbers, 227, 229
Form, 230
time tickets, 227
Form, 228
Ledger (See also "Accounts")
controlling accounts (See "Con-
trolling accounts")
INDEX
435
Ledger Continued
expense, 218, 266. 267
Form, 219
factory or cost, 76 (See also "Cost
sheets")
controlled by general ledger, 74
estimated cost system, 358
process cost system, 90, 328,
343-348
Forms, 345, 346, 348
general,
"account," 360
relation between cost accounts
and, 4, 73
plant, 220
stock (finished goods), 77
Form, 78
stores, 76-78, 81, 119, 126, 218
Form, 78, 128, 129
control of, 130
discrepancies, 139
posting from stores received
book, 126, 130
process cost system, 88
Letter code of classification, 155,
159
standing expense orders, 267
Light and heat, 226, 394 (See also
"Electricity," "Gas"; also gen-
erally "Fixed charges")
account, illustrated,
production-center system, 320
textile costs, 394
Lumber industry, charges applied
to raw material, 150
M
Machine-rate method of distribu-
ting expense over product, 272,
277-279, 287-298, 301-327
accounts, 310-327
chart, 310
Form, 312, 313
illustrated, 319-326
chart of procedure, 303
Form, 303
cost sheet, 308
Form, 309
departmental division into pro-
duction centers, 98, 278, 287,
301
illustrative system, 301-327
journal entries, 311, 314
illustrated, 314-318
labor cost, 306
machine expense account, 296
material cost, 306, 309
parts classification, 305
production orders, 305
rates,
administrative expense, 291
building expense, 289
charging, 293
checking, 294
computing, 288-293
depreciation charge, 290
insurance charge, 290
power plant expense, 289, 290
rent, 289
repairs expense, 291
schedule of , 292
supplementary, for idle time,
295
supplies, etc., expense, 291
taxes charge, 290
tools expense, 291
statement of expenses, 308
Form, 307
stock list, 304
Form, 304
Machinery, 213, 217, 222 (See also
"Machine-rate method of dis-
tributing expense")
depreciation, 244-252, 290
expense account, 296
illustrated, 323
insurance, 290
power expense, distribution, 260
taxes, 290
436
INDEX
Maintenance of buildings (See
"Building expense")
Manufacturing account (See "Work
in process account")
Manufacturing and profit and loss
statement, 109
Material, 17, 115-162 (See also
"Stores," "Supplies")
account, 79, 81, 86, 122
entries, 81
estimated cost system, illus-
trated, 359
illustrated, 83
journal entries, illustrated, 106
production-center system, illus-
trated, 324
textile costs, 367, 368
bill of, 135
Form, 135
costs,
estimated, 63
process method, 86
estimated cost, 63-65, 149 (See
also "Estimated cost system")
included in term "stores," 23
indirect, 17 (See also "Supplies")
inventory or record, 76
parts classification, 305
record on cost sheets, 131, 306
proof of, 132
records, 76 (See also "Stores")
requisitions, 29, 55, 133
Forms, 34, 57, 134
analysis, 226
classification, 131, 136
parts, 67
posting to general ledger, 131,
136
process cost system, 134
production-center system, 306
purposes of, 134
record on stores ledger, 127, 306
summarized in stores issued
book, 131
supplies, on distribution sheet,
224, 253
when impracticable to use,
148
sheet, 135
Form, 135
stock list, 135, 304
Form, 135, 304
stores department expense ap-
plied direct to, 268, 297, 302
Material cost method of distribut-
ing expense over product, 272,
281
Mechanical time card, 167, 168, 176
Form, 181
Mercantile business, costs, 24
Messenger service, 221 (See also
general subject of "Labor, in-
direct")
Methods of cost accounting (See
"Cost accounting")
Methods of distributing expense
over product (See "Expense in-
direct, distribution over prod-
uct")
Mining, 91, 328 (See also "Brick-
making")
Mnemonic system of stores classifi-
cation, 159
Monthly reports of production, 336
Form, 337
N
"Needle" industries, estimating
costs in, 65
Non-productive departments (See
also "Administrative expense,"
"Building expense," "Power
plant expense," "Stores depart-
ment expense")
accounts, 102, 268
distribution of indirect expense,
99, 103, 104, 257-270
sub-departments expense, 265-
INDEX
437
Non-productive departments Cont.
expense, indirect,
chart, 212
Form, 216
Non-productive labor (See "Labor,
indirect")
Notions manufacturing concern, 350
Number, order, 33
Numerical classification system, 155
standing expense orders, 229-232,
267
list, 227, 229
Form, 230
Obsolescence, 245
Office expense (See also "Adminis-
trative expense")
account illustrated, textile costs,
397
Operating departments (See also
"Productive departments")
subdivided into production cen-
ters, 278, 287, 301
Order method of cost-finding, 13,
41, 47-52 (See also "Cost ac-
counting")
entries in controlling accounts,
81-86, 95, 96
Orders,
production, 29, 50, 55, 305
Forms, 32, 51, 57
authorization of, 32
Form, 32
combination, 55
Form, 57
cost sheets (See "Cost sheets")
coupon, 58
Form, 59, 60
numbering, 33
parts product, 67
process cost system, 138
Form, 137
sources of, 31
summary of stores issued, 138
replacement, 146
standing expense (See "Standing
expense orders")
Overhead (See "Expense, indirect")
Overtime, effect on expense distri-
bution rates, 282
Paper mill, 43, 50
Parts,
account illustrated, production-
center system, 324
as stores, 115
classification, 305
finished, 67
account, 86
definition, 24
when "stores" and when "stock,"
24
Parts product, 66
Pattern costs, 52, 261
Pay-roll, 167, 168, 172, 187-193, 339
(See also "Labor, indirect")
Forms, 188-190, 340
account, 89, 94
process cost system, 89
account, illustrated, 95, 107
journal entry, illustrated, 107
production-center system, 323
textile costs, 400
analysis, 172, 226
charts, graphic, 190
Forms, 192, 193
cost period different from pay
period, 172
period, coinciding with cost per-
iod, 23
process cost system, 88, 339
Form, 340
sources of data, 36
Pay systems (See "Wage systems")
438
INDEX
Percentage of labor method of dis-
tributing expense over product,
272-275
Period, cost (See "Cost period")
Perpetual inventory (See "Inven-
tory")
Physical inventory of stores, 121
Piece-rate method of wage payment,
differential piece-rate method, 200
straight method, 197-200
fixing rate, 198
Piece-work, 169-171
chart, graphic, 191
Form, 192
pay-roll, 187
Form, 188
time card, 184
Forms, 184, 186
coupons, 185
Form, 186
Plant,
assets, 213, 217, 222
building expense (See "Building
expense")
depreciation (See "Depreciation")
Power expense,
account, illustrated
textile costs, 394
Power plant expense,
account, 217
account, illustrated, 103
journal entry, illustrated, 107
on distribution sheet, 260
process system, 344
production-center system, 289,
290, 319
account, illustrated, 319
Premium system of wage payment,
202
graduated method, 206
Prepaid expense, 98, 101, 217
Prices,
selling, fixed by cost accounting,
5, 6
stores, 123, 128
fluctuations in, 142
Prime cost, elements of, 16
Prime cost method of distributing
expense over product, 272, 281
Printing plant, 42
daily time sheet, 182
Form, 183
production order, 33
Form, 32
Process cost system, 12, 43-49, 86-
95, 328-348
account classification, 328
accounts, 271
brick-making plant, 46, 50, 87,
328-348
accounts, 328, 343-347
Forms, 344, 346
administrative expense account,
344
Form, 344
brick production record, daily,
334
Form, 334
broken brick record, daily, 335
Form, 335
broken brick record, monthly,
336
Form, 337
cost-estimating for special
orders, 329, 330
cost ledger, 328, 343-348
Forms, 345, 346
cost ledger summary, 347
Form, 348
drawing report, 332
Form, 333
fixed charges schedule, 341
Form, 342
kiln record, 337
Form, 338
pay-roll, 339
Form, 340
power plant expense, 345
purchase journal, 339
INDEX
439
Process cost system Continued
brick-making plant Continued
setting report, 332
Form, 333
time ticket, 179, 331
Form, 180
cement plant, 87
classification of stores, 131
closing controlling accounts, 90,
106-108
combined with order system, 48
compared with order system, 95
cost ledger, 90
defined, 41
distribution of costs direct to
product, 92
distribution of expense, over
product, 271
distribution of manufacturing
costs, 92
entries in controlling accounts,
86-96
expense, indirect,
accounts, 89, 106-108, 269, 344
distribution, 89, 271
distribution direct to product,
44, 92
flour mill, 87
journal entries, illustrated, 106-
108
labor, 88, 94, 165
account, illustrated, 95
records, 166
time basis of payment, 167
material cost, 86
material requisitions, 134
pay-roll, 339
Form, 340
account, 89
analysis, 172
production reports, 43
Form, 45
purchase journal, 339
stores classification, 131
stores issued book, 138
stores ledger, 88
supplies account, 88
textile costs, 363 (See also "Tex-
tile costs")
textile costs, illustrated, 363
work in process account, 89
closing, 90
illustrated, 90
Product,
distribution of expense over, 98,
213, 225, 271-286 (See also un-
der "Expense, indirect")
Production-center method of distrib-
uting expense (See "Machine-
rate method")
Production chart, graphic, 415
Form, 413
Production orders (See "Orders")
Production reports, 44, 332-339
Forms, 45, 333-335, 337, 338
summary,
daily, 337
Form, 338
monthly, 336
Form, 337
weekly, 44
Form, 45
Productive departments,
indirect expense, 212
chart, 212
Form, 214, 215
distribution over departments,
99, 103, 104 (See also "Ex-
pense, indirect, distribution")
indirect expense account,
illustrated, 104
journal entry, illustrated, 107
productive - center sub - depart-
ments, 278, 287
Productive-hour method of distrib-
uting expense over product,
272, 275-277
Profit and loss account, 109
Profit or loss shown by cost ac-
counting, 4
440
INDEX
Profits of different lines,
cost accounting indicates, 5, 6
Purchase journal, 81, 122, 130
expenses, Indirect, 213, 217, 224,
253
posting to general ledger, 130
process system, 339
Purchase order, 124
Purchasing department, 116, 124
Rates, depreciation, 247
Rates of expense distribution over
product, 42, 212, 271-285
adjustment between actual and
pplied expense, 212, 282-285,
295
flat percentage charge, 284
reserve account, 283
machine-rate method, 272, 277,
279, 287-298, 301-327 (See also
"Machine-rate method")
material cost method, 272, 281
percentage of labor method, 272-
275
prime cost method, 272, 281
process system, 271
productive-hour method, 272, 275-
277
sold-hour method, 272, 279
Ratio charts, 406, 410-418
Forms, 413, 418
Raw material (See "Material")
Records,
cost, 29
cost sheets, 30, 38, 76 (See also
"Cost ledger")
Forms, 39, 57
material recorded on, 131
production-center system, 308
Form, 309
record of stores issued, 138
requisitions posted to, 306
expense, indirect, 224 (See also
individual headings throughout
index)
inventory sheet, 121
Form, 120
labor, 165-194 (See also "Labor")
process cost system (See "Process
cost system")
reports (See "Reports")
stores, 115, 118-141 (See also
"Stores records")
time (See "Time records")
Register, voucher (See "Purchase
journal")
Rent, 98, 100, 233, 236 (See also
generally "Fixed charges")
production-center system, 289
Rent expense,
account, illustrated, 101
journal entry, illustrated,
107
Repairs,
machinery, 221 (See also general
subject of "Labor, indirect'*;
production-center system, 291
standing expense orders, 226
Repair shops, records in, 30
Replacement order, 146
Reports (See also "Statements")
material used, 148
production (See "Production re-
ports")
time (See "Time records")
Requisitions (See "Material requisi-
tions")
Reserve for expense account, 283
Return of material to vendor,
139
Rope making, 50
Salaries (See "Labor," "Pay-roll")
Schedule (See also "Analysis")
depreciation, 224, 234, 249, 253
Form, 250, 251
textile costs, 397, 398
INDEX
441
Schedule Continued
fixed charges, 224, 233, 253
Form, 235
process system, 341
Form, 342
Scheduling work in department!!,
for even capacity, 62
Scrap, 147
Selling price,
cost accounting fixes, 5, 6
elements of, 25
Form, 25
Service departments (See "Admin-
istrative expense," "Power plant
expense," "Stores department
expense")
Sheets,
cost (See "Cost sheets")
expense distribution (See "Ex-
pense, indirect, distribution
sheets")
Shipping department, account illus-
trated, textile costs, 393
Shipping expense,
chart, graphic, 417
Form, 418
Shoe factory,
day's work sheet, 62
estimated cost of material, 149