Jerome Lee Nicholson.

Cost accounting, theory and practice online

. (page 18 of 19)
Online LibraryJerome Lee NicholsonCost accounting, theory and practice → online text (page 18 of 19)
Font size
QR-code for this ebook


9


o




















































i


<




_




_




_


_


_







_








1-

























] —





' —


1 —






























































1


<->


H


















































i ;




"




























w


h




































































































1 I 1




^


















































1 1 1




^




























1 1


o






























[ j 1
































: 1


^






























% 6 '


to


'h






























s




























oz ;
































































I-




























































































































































































UJ 1

1- !
























































8 5 i

.}£ U. 1




























<a 1




Ǥ F '






























A..B.
EW Y

CER




























O




u^ H i
































1- UJ ;
































CC 1
































O 1

1 I


o

1-

<


5
Q
























^ i




It! '




























<u




O S
































































2-S




























Q.




































Li. •<

































"a



3i8



COST ACCOUNTING





III 1




■«ft




2


11

IS 0.






z


II III




























;?


III 1




























S










III 1




_l


o


















O


CO


1 III 1








B






J


CO 1






II ' III 1






H 1










CO :

8i












o


II III 1


























Q o

11











CQ


1 III 1
















CO "^












1 III 1






< J;








1


CO ^








III


ll




0. "


1 III 1


o




8^






oc




< S
















1-










co




^'






o
liJ


111
<


?










QC




S




















s






























.


















. n III


































J




1



to



I



FINISHED PRODUCT, SALES AND FINANCIAL



319



,-,


1 1 1




























-1
<


i





























1-








III


















































]h-












°








a:


<








a

z










III




















s
































fj.








CD
UJ


m


<






_J
<


_i


















s

























H














05















j^











%






u.


1-











5














CO
CO

>
















_J


f:






<


k3






z


iP„






<


i








_i

















i_
















<











^



^






320



COST ACCOUNTING









"1


t

K


>«.


























1 "






I
1

1

-o

Q

{?
Oi

O

o

o

z

o

z
<

CO
UJ

_J
u.

o

(-

z
liJ

UJ

1-












1-

8
d


^








































i


































§1

ii




"






























3

-1


^






i

s


































§


































1


































UJ

s













11








™ j
















~ 1








- 1








1




1
















1




- '




1












f
















R
































3








1




j
















1









= 1








1




- 1










(




1




1
















1
















-6

<o

S

qJ







s



FINISHED PRODUCT. SALES AND FINANCIAL



321





322 COST


ACCOUNTING














STATEMENT OF PROFIT AND LOSS




DEPARTTVrENTS


SALES


GROSS PROr


Amount


CO.


Amount 1






18


Has


90




.9


SM


08


9


499


cff?




B




1


7,9fi


86




1


084


30




7J3


56









3


46S


94




1


m


62


1


_SZ7


3?.




D




1


712


10






.9,5?!


04




_760


06




B




1


698


06




I


102


60




-535


46




P






^sas


n8






419


79




_i63_


66




Q




S


791


90




2


H9,4


44


1


^467


46




B




J


247


98






568


04




6n9


:■{)




I






538


,92




8


IH


18


3


SS4




J




2


74,5


U




1


f,8fi


69


7


_I5i'




K






842


88






469


68




37;?




L






m


76






270


68




274


08




M.




/fi


070


42




8


106


44


7


963


W




N






844


H8






661


44




282


,94









.6


786


80




.■?


.9,57


02




835


78 \




P






67J_


S6






S19


16




354


?.0\


























































































































































!




























































































































































I'


























I:
































































































































































From Operating




















































AU other Income md Eipenses




































































































From aU Source.




67


474


88


3i


790


06 31


684


S2




Approved:


, i



Form 68a. Monthly Profit and Loss Statement (left).
(See pages 130, 176, 198.)



FINISHED PRODUCT, SALES AND FINANCIAL



323



For the.wpnt/t ending. J9


EXPENSES


NET PROFIT 1




Selling


1-


Administrative


%


Total


%


Amount


%




^


^4_


10


39. 1




f<0S


06


•16.2


^


16'>.


16


55.3


4


337


66


46.7








4"






77,';


IH






599


60






_112


96








_jg22


04






^56


54






877


58






999


74


63.0






372


64






in 3


94






52ff


58






_S33


JS_
02


- 1.3








40








03






609


48




_


_14




Ifii


W








34






232








_J3J.


54


55.2






.90.9


R4






375


82




1


285


46






182


00


7.8






223


.U






91


86






314


20






365


74


64.4




7


»a4_


m






509


80




1


744


4.?




1


640


32


52^0






fi^-»


44






ff>6


08






880








_2Z9


10


^1.8






m


H4






75


84






259


6S






113


59,


24.2






105


94






43








149


66






124


42


46.0




3


ITS


SS




1


309


08


4


481


96




3


482


02


42.9






219


76






90


74




310


.50






27


,'ifl


- 4.9




J


L_546_


M






flW


14






SS4


48




_


34S


7(7










92






51


68






176


60






177




55.7


















































































































































































































































































































































































































































































































































































































































































































































































































































































14


022


60




5


782


40




19


795


00




11


889


82


33.2




Correcti






=



Form 6Sb. Monthly Profit and Loss Statement {right).
{See pages 130, 176, 198.)





324 COST ACCOUNTING




















1

COMPAEA*








ASSETS


COEEBXT MONTH


Ittorease at Dei •




Accounts


Amount


Amoout


ArnoTml!


Am




CURRENT ASSETS




















^


CsBh








6


008


43








/ (J


Note. Receivable








2


145











-5


Accounts Receivable








Sfi


74P


?!










IU«r Material








,w


437














Material-Finished ill Process








49


562


SO




























































DEFERRED CHARGES:
























Selling Expense








a


741


$•>.








ff




AdmlnistratlTe Expense










'^4t


7,'i








P




























PROPERTlf:




















1




Real Estate








no


000


-








•"




Building.








iw


475


W













Machinery 4 Tool.








17 L


O'^O


Q7.












Factorj Furniture 4 Fixtures














li




OBoe Furniture 4.Fixtures








,1


lis


W




































PATENTS, PATTERNS 4 DRAWINGS:
























Patents








7


500















Patterns








J"


fi-Ci


_








j^








































































































































































,
























'~Z'C
















































































































































































































Total Assets








572


764


66








12 i










Form 69a. Balance Sheet (left). (.


^ce


P^


^S


es


13


I,


19c


).)




i



FINISHED PRODUCT, SALES AND FINANCIAL



325



BALANCE SHEET.

January. 31. 1909.




LIABILITIES


CCTEBBNT MONTH


,.„....„.„..„ n


Accounts


Amount


Amount


-"■"


..0... 1 1


CAPITAL STOCK








250


000


-






















































































































































































-




























CURRENT UABILITII-S:


































?•!


500


_








— V


Wrt


-














40S


70










73±
P4^


58.
8JL


-


Pay Eon










7f1


95


































RESERTB FUNDS:




























For DiBMUim










287


46











256


01








































a>


400


_










too


_














51"^


















foLSnWTMt






















































JIORIGAGB








100


000


_












































SURPLUS












5^












































NET RROHUr for the cvirrenl


























-


a.c»l j<«r U) dat.










H8'>


H".








U


889


«^


















































































































\


























































































































































































































































Total Liabilltiea








572


764


66








12


G29


7G









Form 6gb. Balance Sheet (right). (See pages 131, 199.)



326



COST ACCOUNTING





i i i


k


















































1 ' '


o
o












































1 ! '


-I


























<
























1 1 <


h-
























1 1 1


o
























i ! i

1 '


h-
























I ' '
! ' '

! 1 !
1 i [









































































! ' '
1 ' '


3
























1 '


-i
























• ' 1


























! • >


q;
























1 • ■


Ui


























H


























<
























w i


7
























C 1 1
























<2 ^ 3 !
























J-5 § !














































V


CQ a:
1 > 1


i

2
























J I ^










.














!


1 [ o



























c 1 ♦s
























1


lit


i










































o .tJ o « o
























Z (0 J Z O


















_




_



Co



c=;



fj;<



I



FINISHED TRODUCT, SALES AND FINANCIAL



ZV





z
o


2:




























































<


i




































































































(X


































o











































































^


=


=:


=


=







=






=




=


=








J


































<


































h





































































f-


































j


































<






























































a


































lU


































H


































<


































Z
































CO

q:


a




























































UJ


































a:




































7"





































































K


































Q.


































a.









































































































































Q


































U)


































K




































































Q































^



INDEX OF FORMS



Accounts payable

register of, 251, 252

voucher, 247-250
Analysis

of cost of sales, 318, 319

of factory expenditures, 289

of pay-roll, 283, 284
Assets and liabilities, statement of,
324, 325



B



Daily time reports, 272, 273, 275-

282
Defective work report, 301



Employee's time report, 2-]^, 276,

278, 279
Estimated costs, schedule of, 302



Balance sheet, 324, 325

Billing and shipping record, 313-

315
Bill of material, 268, 269 (See

also "Material requisition")



Certificate, credit, 316, 317

Cost of sales, analysis of, 318, 319

Cost sheet, 302-306

and production order, 258-261
Costs

schedule of estimated, 302

selling
statement of, 320
Credit certificate, 316, 317



Factory expenditures

analysis of, 289

statement of, 289-294
Factory (or operating) ledger, 321
Factory (or production) order,

256-263
Finished stock record, 307-310



Inventory sheet, 312
Inventory test, 311



Journal, purchase, 245, 246



328



INDEX OF FORMS



329



Ledger, factory, 321

M

Machine cost, and process record,

295, 296
Material
bill of, 268, 269
delivered, report of, 270, 271
raw, record of, 253-255
received

report of, 241-244
sheet, 241-244
requisitions, 264-269
summary of, 270
IMonthly profit and loss statement,

322, 323
Monthly statement of assets and
liabilities, 324, 325



Operating (or factory) ledger, 321
Order

factory or production, 256-263

purchase, 239, 240



Part-finished stock record, 307-310
Pay-roll, 285-288

analysis of, 283, 284
Plant and tool record, 326, 327
Power cost and distribution, 296
Process and machine cost record,

295, 296
Process card record, 295
Production and costs, summary of,

298-300, 304
Production (or factory) order,

256-263



Production order and cost sheet,

258-261
Production report (or production

summary), 297-300, 304
Profit and loss statement, 322, 323
Purchase journal, 245, 246
Purchase order, 239, 240
Purchase requisition, 238



Raw material stock record, 253-255

Register
of accounts payable, 251, 252
of sales and costs, 318, 319

Report

defective work, 301
material delivered, 270, 271
material received, 241-244
production, 297-300, 304
time, 272-282

Requisitions

material, 264-269

summary of, 270
purchase, 238



Sales
analysis of, 318, 319
and costs, register of, 318, 319
Salesmen's costs, record of, 320
Schedule of estimated costs, 302
Self-figuring time card, 280-282
Shipping and billing record, 313-

315
Statement
of assets and liabilities, 324, 325
of factory expenditures, 289-294
of profit and loss, 322, 323
of sales and selling costs, 320
Stock record
part-finished and finished prod-
uct, 307-310
raw material, 253-255



330



INDEX OF FORMS



Summary self-figuring, 280-282

of material requisitions, 270 weekly, 274

production, 297-300, 304 Tool and plant record, 326, 327

production and costs, 298-300,
304

Voucher, accounts payable, 247-
T 250

Voucher register, 251, 252
Test, inventory, 311
Time reports, 272-282
daily, 272, 273, 275-282 Weekly time report, 274



INDEX



Accounts payable
register of, 104, 202
Forms, 251, 252
voucher, 103, 201
Forms, 247-250
Accuracy of stock records, test-
ing, 91
Administrative expenses, 30, 129
Analysis
of cost of sales, 118, 168, 174,
183, 193

Forms, 318, 319
of factory expenditures, 109, 204,
230

Forms, 289-294
of operations, 48
of pay-roll, 108, 182, 229
Forms, 283, 284
Application of cost principles, 23,

46
Applying cost charges, basis of, 46
Assembling department, examina-
tion of, 150
Assets and liabilities, statement of,
131, 199
Forms, 324, 325

B

Balance, sheet, 131, 199

Forms, 324, 325
Bill and shipping order, 117, 193



Forms, 313-31S
Bill of material, 90, 182 (See also
"Material requisition")
Forms, 268, 269
Bonus plan of paying wages, 75
Burden, expense, 25
By-products, 50



Cancelled and received order stock
record, 116
Forms, 310
Certificate, credit, 118, 193

Forms, 316, 317
Charges
direct, 24

indirect, 25 (See also "Dis-
tribution")
Charts of cost systems
explanation of, 161
product system

machine or process method,
236a

explanation of, 232
productive labor method, 226a
explanation of, 222
special order system
machine or process method,
214a

explanation of, 209

productive labor method, 198a

explanation of, 194



331



2>^^



INDEX



Classification
of administrative expenses, 129
of cost systems, 47
of indirect expense, 25
of manufacturing departments,

49
of production costs, 24
Cole, William Morse — "Interest in
Its Relation to Costs," 34-40
Commercial expenses, 30
Compiling the cost data, 101-126
factory ledger accounts em-
ployed, 120
illustrative journal entries. 124
records and forms generally
used, loi
Contract system of paying wages,

78
Control of cost records, 123, 127-

133, 163, 196, 211, 224, 233
Control of cost records by financial
records, 127-133
administrative expenses. 129
balance sheet, 131
methods of controlling cost

records, 127
monthly profit and loss state-
ment, 130
plant and tool records, 133
sales accounts, 128
salesmen's costs, 132
selling expenses, 128
Co-operation of management and

employees, 155
Cost accounting, general functions

of, 21
Cost accounts as related to general

accounts, 21
Cost data

compiling the, 101-126
journalization of, 125
Cost finding and its functions,
19-23
application of cost principles, 23



cost accounting as related to
general accounting, 21

functions of a cost system, 22

general functions of cost ac-
counting, 21

various phases of efficiency
progress, 20
Cost finding, principles and gen-
eral methods of, 46-53 (See
also "Cost systems")

analysis of operations, 48

applying cost charges, 46

calculating costs, 46

direct production departments,

49
distribution of indirect expenses,
51 ( See also "Distribution")
indirect production departments,

50
labor costs, 51
machine cost method, 47
material costs, 50
types of systems, 47
Cost finding systems (See "Cost

systems")
Cost journal, 120
Cost of sales, analysis of, 118, 168,
174, 193
Forms, 318, 319
Cost period, 158
Cost, prime, 2>2
Cost principles, application of, 23,

46
Cost records
and financial records
interlocking, 21, 127-133
relations between, 21
control of, 123, 127-133, 163, 196,

211, 224, 233
list of, 102

progressive, 115, 220
Forms, 304
Cost sheet, 114. 167, I73, 220, 231
Forms, 302-306



INDEX



333



and production order, 89, 190,
192, 202, 208
Forms, 258-261
Cost systems

classification of entries, 162
departmental, 160, 178-185
devising, 155-165
ends attained, 22
estimating, 159, 166-177
first plan, 167

verification, 168
second plan, 171

verification, 172
third plan, 172

verification, 175
product system

machine or process method,
46, 160, 228-236
chart, 236a
productive labor method, 46,
160, 215-227
chart, 226a
special order system

machine or process method,
46, 160, 200-214
chart, 214a
productive labor method, 46,
160, 186-199
chart, 198a
types of, 47
Costs
and production, summary of,
112, 115, 220, 230
Forms, 298-300, 304
basis of application, 46
elements of, 24-32

relations of to selling price, 2)^
diagram, 31
installation, machinery and tools,

29
interest in its relation to, 33-45
labor, 51, 136

recording, 80, 92-100
material, 50



recording, 81-92
power, 28

and distribution, 207
Forms, 296
schedule of estimated, 114, 167,
173
Forms, 302
scrap value, 50
selling, 30, 118, 128
statement of, 132
Forms, 320
Credit certificate, 118, 193
Forms, 316, 317



Daily time reports, 95-100 (See
also "Time reports")
Forms, 2-j2, 27;^, 275-282
Day rate method of paying wages,

71
Defective work, 30
reports of, 113. 219
Forms, 301
Departmental cost systems, 160
178-185
conditions where applicable, 179
department accounts, 183
forms used in, 180
methods and principles, 179
scope of, 160, 178
work in process method. 184
Departments (See also "Exam-
ination of plant")
direct production, 49
indirect production, 50
operating, 49
Depreciation, 26

distribution over cost, 27
Devising a cost system, 155-165
(See also "Cost systems")
charts of cost systems, 161
co-operation of management and
employees, 155



334



INDEX



cost period, 158
departmental system, 160
estimating cost systems, 159
fitting the system to existing

conditions, 156
forms and designs, 164
general description of entries,

162
general outline of systems, 159
method of control, 163
red tape, 157

reports for executives, 158
special order and product sys-
tems, 160
subsidiary records, 163
Diagram, relation of costs to sell-
ing price, 31
Dickinson, A. Lowes— "Interest in

Its Relation to Costs," 40-44
Dies and small tools, 29
Differential bonus plan, wage sys-
tem, 76
Differential rate plan, wage sys-
tem, 74
Direct charges, 24
Direct expense, 25
Direct labor, 24, 51, 54, 56, 58, 136

under process plan, 51
Direct productive departments, 49
Distribution of indirect expenses
departmentally, 52
depreciation, maintenance and

repairs, 2"]
direct labor and material cost

method, 58
direct labor cost method, 54
direct labor hours method, 56
elements to consider in choice of

method, 52, 53
experimental work, 29
fixed machine rate method, 64
forms for, no
interest, 30
methods of, 51, 54-69



miscellaneous, 68
new machine rate method, 60
new pay rate method, 58
old machine rate method, 59
power costs, 28

process or machine method, 46
productive labor method, 46
rent, taxes and insurance, 26
small tools, 29
Dry kilns, investigation of, 143



Efficiency, 20, 137
Elements of costs, 24-32
administrative expenses, 30
depreciation, maintenance and

repairs, 26
diagram of cost and selling

price, 31
direct charges, 24
experimental work, 29
indirect charges, 25
indirect expense, 25

items composing, 26
interest, 30

over, short and damage, 30


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18

Online LibraryJerome Lee NicholsonCost accounting, theory and practice → online text (page 18 of 19)