28 Hardwood Record — Veneer & Panel Section September 25, 1918 



LONG-KNIGHT 



LUMBER COMPANY 

 CYPRESS 



WALNUT- HARDWOODS 



WALNUT LUMBER 200,000 ft. 1" No. 1 C. 150,000 ft. 4/4 No. 2 C. 



30,000 ft. 1" FAS 15,000 ft. 5 4 No. 1 C. 38,000 ft. 5/4 No. 2 C. 



3,000 ft. 5/4 FAS 1 1,000 ft. 6/4 No. 1 C. 28,000 ft. 6/4 No. 2 C. 



1,000 ft. 8/4 FAS. 3,000 ft. 8/4 No. 1 C. 22,000 ft. 8/4 No. 2 C. 



VENEERS 

 255,000 ft. 1/28" Mahogany 227,000 ft. 1/28" Walnut 367,000 ft. 1 28" Butt Walnut 



Manufacturers and Wholesalers 



Indianapolis, Indiana 



Letters from a Panel User ■"="i^ ^^ foremen, expense to departments to which material is de- 



„ ^. ^ ^ livered on the basis of value; office salaries on basis of productive 



Regarding Cost Systems . , , ^ .u u ■ c u j 



labor; power plant expense on the basis of horsepower used, num- 



Monroe, Mich.. September I 9.— Detailed information is sought ^ar of lights and radiation area. If you have a double entry system 



these days by panel and veneer manufacturers for a simple cost ^f bookkeeping you will have little trouble working out suitable 



system. We can in a few words ofler suggestions, which, if prop- recounts that take care of the distribution of your expenses and 



erly applied, will be of great assistance and will place panels and (o apply them where they properly belong. Having accomplished 



veneers manufacturers in a position to grasp the fundamental ^^^-^ -^ ^^^,j j,^ ^ ^^^y ^3,y ^^^j^^ ^^ determine the expense 



nrinciples of an ideal system. ^„3t ^t ^he rate per thousand square feet of the veneer cut. 



Your whole cost scheme must start with your books. Your If the mill is producing a considerable quantity of veneer it may 

 materials can be handled in accounts by the use of special columnar be well to compute the expense cost by the machine rate plan, 

 journals, cash books, etc. Whenever you receive a consignment By so doing, each machine will have its own rate and cover the 

 of logs, enter on the credit side of the material "log book" the expense plus production cost. The principal factor in the ma- 

 number of feet purchased. To this must be added the cost of chine rate is. of course, to establish a standard of work hours foi 

 freight plus the cost of handling, pro-rated at the cost per thou- each machine. If every machine were operated fifty or sixty hours 

 sand feet. You must figure this as though the man selling you per week, our machine rate could be established without much 

 the logs agreed to deliver them to your machine. A good scheme trouble, but bearings will go wrong, knives require sharpening, 

 would be to keep a separate tally of each pile of logs and have saws need attention, the stock may be too green and give trouble, 

 the logs sorted so that oak will be piled by itself, walnut, etc. serious breakdowns might interfere, or after we do a lot of intelli- 

 Next, open an account in your material book numbering the ac- gent figuring we will likely find that the machine we thought is 

 count to coincide with the number of the log pile. This number really operating nine hours per day may average seven or eight, 

 must be applied to the time and production cards, and these cards They are important factors and require a lot of thought, 

 should be gathered every morning. The card should show the The war is demanding materials of all kinds. Very few veneer 

 nuniber of feet in the veneer cut; and after all the logs in a pile manufacturers are trying to "bleed Uncle Sam." but no man can 

 have been manufactured into veneer or lumber, mark the last cards manufacture at a loss. If there ever were a time in the history of 

 applying to the lot as "dead" or use any other symbol you desire veneer manufacturing and panel making when healthy cost meth- 

 to note that the account must now be closed. You now know the ods are necessary, we are certainly living in that age. 

 correct and absolute cost of your material and there is no other Carefully investigate your costs. If your system is one of guess- 

 way in which this can be handled with such a degree of accuracy. ing. change it. The wooden box makers have barely enough lum- 

 It costs money to handle stock and this cost should be termed ber to supply government demands; therefore in the face of these 

 material expense. It is rather difficult to go into this matter very conditions is it not imperative that you lower our wastes by know- 

 thoroughly in an article of this nature. The general method, how- ing absolutely what amount of lumber is being used to manufac- 

 ever. of distributing material expense is applied to departments ture your veneers? Just as soon as veneer and panel manufac- 

 instead of by jobs. Your department costs would contain such turers realize the importance of this fact, just so soon will they 



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