Jerome Lee Nicholson.

Cost accounting, theory and practice online

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power costs, 28
production costs and selling

costs, 30
relation of cost elements to sell-
ing price, 32
rent, taxes and insurance, 26
small tools. 29
Employees and management, co-
operation of, 155
Employees' time reports (See

"Time reports")
Estimated costs, schedule of, 114,
167, 173
Forms, 302
Estimating cost systems, 159, 166-
177
advantages of, 166



INDEX



335



first plan. 167

forms used. 167

verification, 168
purposes and kinds, 166
second plan. 171

forms and records used. 171

verification, 172
third plan, 172

forms and records used, 173

verification, 175
Examination of plant, I34-I54
efficiency. I37
indirect expenses, 137
labor, 136
leaks, 139

mechanical aids, 138
organization, 138
power, machinery and processes,

136
procedure, I34, MO
raw materials and storeroom,

13s
reasons for, 134
schedule of questions for, 141- 154

assembling, 150

dry kilns, 143

foundry, 149

general, 152

manufacturing departments,

144
packing department, 151
plating-room, 150
power department, 143
purchase division, 141
receiving department, 141
repair department, 149
sales division, 152
shipping department, 151
storeroom. 142
wood- working shops, 150
ventilation, 139
Executives, reports for, 158
Expense account, indirect, 121,
125, 126



Expense

direct, 24

indirect, 25. it, 46, SL 54-69. 109.
137 (See also "Distribution")
Expenses

administrative, 30, 129

commercial, 30

selling, 30, 118, 128, 132
Experimental work, 29



Factory costs, final. 31, 2>2
Factory expenses

analysis of, 109, 204. 230

Forms, 289-294
statement of, log, 204, 220, 230
Forms, 289-294
Factory ledger, 120, 219
Forms, 321
accounts, 120, 211
controlling accounts, 123, 127
Factory order, 87, 181, 190, 202,
208, 217, 228
Forms, 256-263
Financial records
and cost records

interlocking. 21, 127-133
relations between, 21
used in cost finding, lOi
Finished product stock record,
116, 192, 221
Forms, 307-310
Finished stock account, 123, 126
Fixed machine rate, 64
Forms and records, subsidiary,

163. 194, 209, 222, 232
Forms for cost systems, comment
on, 164, 167, 180, 187, 200, 216,
228
Foundry, examination of, 149



Gantt system of paying wages, 76



336



INDEX



General or private ledger account,

123
Gillette and Dana bonus plan of

paying wages, 76
Goods returned, costing, 118



Journal
cost, 120

entries, illustrative, 124
purchase, 102, 171, 174, 181,
Forms, 245, 246

Journalizing cost data, 125



189



Illustrative journal entries, 124
Independent check on material re-
ceived, 83
Indirect charges, 25
Indirect expense, 25, 2^, 46, 51, 54-
69, 109, 137
account, 121, 125, 126
distribution of, 51, 54-69 (See

also "Distribution")
items composing, 26
Indirect material, 25
Indirect production departments,

50
Installation charges, 29
Insurance, 26

Interest in its relation to cost, 30,
33-45
bibliography, 44
interest a profit — not a cost (A.

Lowes Dickinson), 40
interest as a charge against costs

(William Morse Cole), 34
should interest be included in
cost? 2,2,
Interlocking cost records with

financial records, 21, 127-133
Inventory, perpetual, 85 (See also

"Stock record")
Inventory sheet, 167, 173

Forms, 312

Inventory test, 91, 194

Forms, 311



J



Job account, 125, 126



Kilns, dry, investigation of, 143



Labor

account, 121, 125

costs, 51, 136

recording, 80, 92-100

direct, 24, 51, 54, 56, 58, 136

indirect, 25
Leaks, 139

Ledger, factory, 120, 219
Forms, 321

accounts, 120, 211

controlling account, 123, 127
Locating stock, 85

M

Machine or process cost record,
III, 205, 207
Forms, 295, 296
Machine or process method
product system, 46, 160, 228-
236

chart, 236a
special order system, 46, 160,
200-214
chart, 214a
Machine rate method of distribut-
ing indirect expenses
new method, 60
old method, 59
Machinery, examination of, 136
Maintenance, 26



I



INDEX



Z?>7



Manufacturing departments
examination of, 144
list of, 49
Manufacturing operations, analy-
sis of, 48
Material
bill of, 90, 182

Forms, 268, 269
costs, 50

recording, 81-92
delivered, report of, 105, 174,
190. 203, 217
Forms, 270, 271
direct, 24
indirect, 25
received

report of, 83, 188, 201, 215

Forms, 241-244
summary, 105
requisitions, 89, 174, 190, 203, 217
Forms, 264-269
summary of, 106, 174
Forms, 270
returned to storeroom, 90
scrap value, 50
Methods
of controlling cost records, 127-

U3, 163, 196, 211, 224, 233
of cost finding (See "Cost sys-
tems")
of distributing indirect expenses,
51, 54-69 (See also "Dis-
tribution")
Methods of paying wages
bonus plan, 75
contract system, 78
day rate, 71

differential bonus plan, 76
differential rate plan, 74
Gantt system, 76
Gillette and Dana bonus plan, 76
miscellaneous bonus plans, yy
piece-work plan, 72
premium plan, 75



profit-sharing plan, 78
stint system, yy
stock distributing plan, 78
Miscellaneous bonus plans of pay-
ing wages, 77
Monthly profit and loss statement,
130, 176, 198
Forms, 322, 323
Monthly statement of assets and
liabilities, 131, 199
Forms, 324, 325

N

Non-productive labor, 25

O

Operating departments, list of, 4^
Operating (or factory) ledger, 120,
219

Forms, 321
Operations, manufacturing, analy-
sis of, 48
Order
account, 125, 126
factory or production, 87, 180,
190, 202, 208, 217, 228
Forms, 256-263
purchase, 82, 187, 201

Forms, 239, 240
systems, special (See "Cost
systems")
Overhead, 25

Over, short and damage account,
30



Packing department, examination

of, 151
Fart-finished stock account, 123,

126



338



INDEX



Part-finished stock record, ii6,
192, 221

Forms, 307-310
Pay-roll, 106, 172, 175, 191, 204,
218, 229

Forms, 285-288
analysis of, 108, 182, 229
Forms, 283, 284
Perpetual inventory, 85 ( See also

"Stock record")
Piece-work plan, 72
Plant, examination of, 134-154

(See also "Examination")
Plant and tool record, 133

Forms, 326, 327
Plating-room, examination of, 150
Power costs, 28
and distribution, 207
Forms, 296
Power department, examination

of, 136, 143
Premium plan of paying wages, 75
Prime cost, 32

Principles and general methods of
cost finding, 46-53 (See also
"Cost finding")
Private or general ledger ac-
count, 123
Process and machine cost record,
III, 205, 207
Forms, 295, 296
Process card record, 205

Forms, 295
Product system — machine or pro-
cess method, 46, 160, 228-236
chart, 236a

explanation of, 232
forms and records used, 228

subsidiary, 232
method of control, 233
Product system — productive labor
method, 46, 160, 215-227
chart, 226a
explanation of, 22^



forms and records used, 215

subsidiary, 222
method of control, 224
Production and costs, summary of,
112, 115, 220, 230
Forms, 298-300, 304
Production costs
and selling costs, 30
elements of, 24-32 (See also
"Elements")
Production departments
direct, 49
indirect, 50
Production order, 87, 181, 190, 202.
208, 217, 228
Forms, 256-263
Production order and cost sheet,
89, 190, 192, 202, 208
Forms, 258-261
Production report (or production
summary), iii, 220, 230
Forms, 297-300, 304
Productive labor method of cost
finding (See "Cost systems")
Profit and loss statement, 130, 176,
198

Forms, 322, 323
Profit sharing plan of paying

wages, 78
Progressive cost record, 115, 220

Forms, 304
Purchase journal, 102, 171, 174,
181, 189
Forms, 245, 246
Purchase order, 82, 187. 201

Forms, 239, 240
Purchase requisition, 82, 187, 200
Forms, 238



Raw matenal

and storerooms, examination of,
135



i



INDEX



339



and supplies account, 121, 125
Raw material stock record, 84, 189,

202, 216
Forms, 253-255

Received and cancelled order
stock record, 116
Forms, 310
Receiving department, examina-
tion of, 141
Recording material and labor costs,
80-100
labor cost, 92

forms used, 92-95
requisites of time reports, 93
material cost, 81
forms used, 82
requirements of cost finding, 80
Records

cost, list of, 102
financial, list of, loi
subsidiary, 163, 194, 209, 222, 232
Register

of accounts payable, 104, 202

Forms. 251, 252
of sales and costs, 118, 168, 174,
183, 193
Forms, 318, 319
Rent, 26, 40
Repair department, examination

of, 149
Repairs, 26
Reports
defective virork, 113, 219

Forms, 301
for executives, 158
material delivered, 105, 174, 190,

203, 217
Forms, 270, 271

material received, 83, 188, 201,
215

Forms, 241-244
production, in, 220, 230

Forms, 297-300, 304
time ( See "Time reports")



Requisitions

material, 89, 174, 190, 203, 217
Forms, 264-269
summary of, 106, 174
Forms, 270
purchase, 82, 187, 200
Forms, 238
Returned goods, costing, 118
Returned material, 90



Sales
accounts, 128
analysis of, 118, 168, 174, 193

Forms, 318, 319
and costs, register of, 118, 168,
174, 183, 193
Forms, 318, 319
Salesmen's costs, record of, 132

Forms, 320
Schedule of estimated costs, 114,
167, 173
Forms, 302
Scrap values, 50
Self-figuring time card, 98

Forms, 280-282
Selling expenses, 30, 118, 128, 132
Selling price in relation to cost
elements, 32
diagram, 31
Shipping department, examination

of, 151
Shipping order and bill, 117, 193

Forms, 313-315
Shrinkage, 30
Small tools, 29
Special dies and tools, 29
Special order system — process or
machine method, 46, 160, 200-
214
chart, 214a

explanation of, 209



340



INDEX



factory ledger accounts, 211
forms and records used, 200

subsidiary, 209
method of control, 211
Special order system — productive
labor method, 46, 160, 186-199
balance sheet, 199
chart, 198a

explanation of, 194
forms and records used, 187

subsidiary, 194
method of control, 196
profit and loss statement, 198
Statement
of assets and liabilities, 131, 199

Forms, 324, 325
of factory expenditures, 109, 204,
220, 230

Forms, 289-294
of profit and loss, 130, 176, 198

Forms, 322, 323
of sales and selling costs, 132
Forms, 320
Stint system of paying wages, 'J^
Stock, locating, 85
Stock record
finished and part-finished prod-
uct, 116, 192, 221
Forms, 307-310
raw material, 84, 189. 202, 216
Forms, 253-255
Stock records, verifying, 86, 91,

194
Storeroom
and ravvr material, 135, 142
examination of, 142
material returned to, 90
Sub-production order, 88
Subsidiary forms and records, 163,

194, 209, 222, 232
Summary
of material received, 105
of material requisitions, 106, 174
Forms, 270



production, in, 220, 230
Forms, 297-300, 304
production and costs, 112, 115,
220, 230

Forms, 298-300, 304
Supplies and raw material account,

121, 125
Systems, cost finding
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
Systems of paying wages, 70-79
(See also "Wage systems")



Taxes, 26

Test, inventory, 91, 194

Forms, 311
Time reports, 93-100, 175, 182, 191,
204, 218, 229

Forms, 272-282



INDEX



341



daily, 95-ioo

Forms, 272, 273, 275-282
forms of, 95

relation to wage systems, 94
requisites of, 93
self-figuring, 98

Forms, 280-282
weekly, 96

Forms, 274
Tool and plant record, 133

Forms, 326, Z'^l
Tools, small, 29
Types of cost systems, 47



Verifying stock records, 86, 91, 194
Voucher, accounts payable, 103,
201

Forms. 247-250
Voucher register, 104, 202

Forms, 251, 252



W
Wage systems, 70-79

bonus plan, 75

contract system, 78

day rate, 71

differential bonus plan, 76

differential rate plan, 74

Gantt system, 76

Gillette and Dana bonus plan, 76

miscellaneous bonus systems, ^^

piece-work plan, 72

premium plan, 75

profit sharing, 78

relation of time reports to, 94

stint system, ^^

stock distributing, 78
Waste, 30
Weekly time report, 96

Forms, 274
Work in process account, 122, 125,

126
Work in process method — depart-
mental system, 184







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