New Britain herald., 1914-08-13
COST ACCOUNTING
 IN FEEDING CATTLE
Quite Important That OWAer Should
 Have Records.

"oSAiiSloIi,{ U. S., Aug. b. He importance of keeping accurate farm records of the cost of feeding animals Is shown in reports giving the profits rom feeding on twenty-four Iowa farms.
 These records, which were made on the corn belt farms of men known to be careful and experienced feeders, were kept carefully for two years. The results reported in Farmers Bulletin No 588. of the U. S. Depart ment of Agriculture, are as follows:
 To determine as accurately as pos Sible the cost of feeding farm anil mals cost-accounting records were kept for two years or twenty-four Iowa farms. The men selected were lead ing farmers in their communities, known to be careful and experienced feeders. During the feeding year beginning with the fall of 1909 the average profit on 961 cattle fed in twenty-two punches was $2.05 per head, in addition to the big profits on the hogs following them. The prices received were very satisfactory. The 1,504 hogs following these steers were given extra grain. Market prices in the spring of 1910 were such that a profit of $6.67 per hog was secured. thus giving a profit of $1249 per steer when the pork was credited to the steers
 The following feeding year 1910-11, proved unsatisfactory, due to prices which caused a loss of seventy eight cents per head on 1,13S cattle that were fed on twenty-eight farms The 1.646 hogs following these steers re- turned an average profit of $3.33, or, when the profit on the 'hogs was cred- ited to the steers, the net profit was $4.04 per steer.
 System of Cost.
 Until systems of cost accounting which took into account all the over head charges as we'll as the main cost were used, the expense of feed- ing was underestimated. The follow ing table shows the proportionate cost of different items, based on the cost records kept on the twen- ty-four Iowa farms. These figures will vary somewhat from year to year as the relative prices of cattle and feeds change. The greatest variation will occur in the original cost of the cattle and in the cost of the feeds.
 Percentage of the various expenses incurred in cattle feeding on twenty four Iowa farms:
 Purchase price delivered at farm. including freight and incidental charges) 1909-10, 55.s per cent; 1910-11, 59.9 per cent.
 Feed, 1909-1O. 36.9 per cent; 191O- II. 31.S per cent.
 Interest at six per cent, 1909-1o, 1.3 per cent; 191o-11. Is per cent.
 Labor. 1909-10, 1.6 per cent; 191O- II, 1.s per cent.
 Shipping and selling (exclusive of 19O9-10, A per cent; 1910-11, A. per cent
 Tn arriving at these figures no ac- count was taken of the occasional loss of steer. which ordinarily averages one-half of one per cent. of the total number; nor were interest, taxes and charges on the feeding plant considered. Careful study indi- cates that these and other incidental charges would about offset the value of the manure, which is also difficult to estimate. In the table interest has been charged at six per cent. on the cost of the cattle laid down at the farm.
 The labor percentage was figured on the basis of man labor at sixteen cents an hour and horse labor at eight cents an hour. The labor cost on forty-nine punches of cattle, total- ing 2,100 head, for an average feed- ing period of 146 days. was a little over nine and one-half mills per head. The cost varied from four mills to as high as two or three cents, dependent on the manner in which the cattle were fed. A larger feeder figured on one cent per day per steer for labor On 500 head this gave him a small profit, which increased with the number fed. A large feeding plant which was operated for eleven years in Nebraska, and during that time fed about 50,00O. steers. figured its cost at 12 cents per head per day. While this firm had expensive labor and equipment, it nevertheless had every convenience for the economical of the feeds.
 Margin Of Profit.
 The selling cost, including freight yardage, commission and other incl