Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-10-06

The business is first divided int.
operating or Factory Departments =
list of which in our plant have n,
ready given you. Each Department,
is a natural division of the process
Of Manufacture.
The standard unit Of prod,o.;.
in each Department is the protno.iO"
or chargeable hour. The coo,
chargeable hour is found by div;si"
the total cost by the number of LIS
geable hours. In arriving at ,n,-
hour cost, stockhandling and se,lins
expenses are not included The nr;n
ter gets back his expense of stno,.
handling by ascertaining over a sls
hcient period it spercentase of u,u
total cost of his stock, and fhnp od.
ing this percentage in each individ,'
al job to the cost of stock used T.,
like manner selling expense is w..
included in the hour cost hn, a.
percentage is ascertained, and tb;s
percentage is added to the cost Of
completed work in each lob.
The accounting problem is 10 find
what each of these Factory Derar,
ments is costing, and of what ,h,.
cost consists. Obviously the first stsn
is to bring the general books Of az
count into harmony with the Cost
Finding System by opening a senor-
ate ledger account for each Factorr
Department. These Ledger accounts
collectively constitute what is called
the Factory Ledger. We carry This
in the back part of the General Led.
ger binder.
Expense accounts and invoices NJ
purchases must be analysed and each
item charged to the proper account
The yellow voucher to which these
invoices are attached is we'll adant.
ed to this purpose. The clerk en-
trusted with this work first writes
in red ink against cac hitcm its elias.
sification number, totals the items
of each such number, checks un the
grand total, and then distributes II
on the outside of the voucher, from
which it is posted to the Cash Jour-
nal in the columns correspondence
numbered.
There arc certain general items
not charScablo to any particular De-
rartmcnt. For instance. gasolene
and rags are for general factory op-
GRAFTON and are charged to an ac-
count called General Factory"
while clerical work unconnectcd with
factory operations is charged TO the
General Commercial" Account. On
the job Cost sheet these two accounts
are pro-rated between the several
Factory Departments on the basis of
the direct expenses of each Depart
ment for the month.
The correct distribution of certain
charges between the several Factory
Departments and expense accounts
involves the accumulation of special
data and sundry special computa-
tons, and we have found it best to
provide this loose leaf binder with
suitable index tabs for the social
forms we have drafted and printed
in the light of our first years expert
ence with this interlocking system
the least possible accounting effort
some rather fussy problems to be
worked out each month"; They cover
the subjects Of Rent. Power, Lights.
Gas, Insurance, Taxes, Depreciation.
Interest on Plant Investment. I,un-
ming Time of Intertypcs and Presses,
Pay Roll Summary. Cost of News
Paper and News Ink. and certain
other matters. The matters worked
out on these sheets are summarized
on Vouchers, and entered on the
Cash Journal. This binder also con-
tains the rules and forms which we
have worked out for settling Il vcXa-
tious class of problems in plant
which. like oHrs. combines news
paper and job printing business, with
complete physical separation be-
tween the two impossible but where
Il proper distributions of certain gem
cral expenses between the two
branches is essential to the produc-
ton of reliable cost figures in each.
A single account for Machinery
and Equipment is carried on the
General Ledger, but in this special
iple-column Equipment Ledger
the equipment of each Department is
carried in Il column of its own, the
debit sheets showing the additions TO
equipment and the Credit sheets the
deductions, so that the net balance
in any Department can be struck at
the end of any month. All vouchers
containing Equipment entries a"e
kept in separate file, and the
Voucher Number is entered on this
Ledger, rs well as the description OF
the Asset, it's location in the plant,
and its asset number. every asset in
the plant that is physically capable
of it being numbered with brass
tag, these numbers running consecu-
lively on the Equipment Ledger.
When an asset is sold. exchanged or
strapped, the brass tag is turned in
to the Accounting Department.
which can Immediately identify the
asset tell when and of whom it was
purchased, how much 1t cost, what
depreciation has been taken on it to
date, and the amount of profit or
loss. this data being necessary for
Federal taxation as well as for gem
eral accounting purposes. The Equip
ment Ledger is also provided with
a specially devised alphabetical in
deX. so that assets can be located by
name as well as by asset number.
The sum of the individual columns
must equal the Grand Total Column,
and the balance of the debit and
credit Grand Totals must agree with
the balance of the Equipment Ac-
count in the General Ledger.
The essential features of the Cost
(Continued ON Pann 2ACnl Ii