luuing and Accounting for Store* 



one Of item. It iv therefore, necessary to 



assign a proper proportion of it to each <>nlcr on 

 some reasonable and consistent basis. There are 

 umber of bases on which this is done. Usually 

 the overhead is applied as a certain percentage 

 cost of material or cost of labor entering 

 the itc cralK, the vlircct labor cost is 



the best basis; but, in the case of stable and con- 

 tinuous industries, such as salt works or cement 

 inch turn out a simple and uniform product, 

 the material will form sfactory basis. To 



rminc the cost, therefore, it is necessary, what- 

 \stem is followed, to know accurately the 

 v of material which has been use 

 ; be determined only by sending all material 

 through a storeroom and issuing it from that store- 

 in solely on requisitions, each of which specifies 

 ;nitcly the order number or account to which 

 that material is to be charged. 



. //'///V/i M at f rial Is Charged. 

 main classes of orders against which material 

 is charged arc three. The first consists of cus- 

 orders, where the customer has ordered 

 icfinitc unit, such as an engine, a printing press, 

 . and all the material going into it or used for 

 manufacture can be charged against this order. 

 In the second class, we find slock ordrrs, which 

 are tor units of standard design, put through in 

 lots as, for instance, 1,000 a !cs, or 100 



dozen shoes. I hcsc m.iy or may not have been 

 sold to customers; but, as alike in de- 



sign and material, the cost of the lot may be han- 



