COST ACCOUNTING 253 



corn should be charged to Corn account in the same way 

 that cost of husking would be charged. These entries are 

 made in the regular way after the time has been recorded 

 in the man and horse labor records. 



These two, elements, then, cost of the corn and cost of 

 filling constitute the direct cost of silage. To these must 

 be added at the close of the year, through proper entries, 

 any charges arising from depreciation of silo, silage cutter, 

 rent, or interest on investment in silo, and a proportion of 

 equipment and general expense. The sum of these charges 

 is the cost of silage. The cost per ton should be calculated 

 in order to have the latter figure to use as a basis for charg- 

 ing the silage to livestock. 



The Silage account is credited through the feed record 

 with the value of silage fed to livestock. After the number 

 of tons fed has been determined in the feed record, the 

 value is found by multiplying the number of tons fed by 

 the cost per ton as determined from the debit side of Silage 

 account. Theoretically, when all silage has been fed, the 

 account should be in balance. Practically, there will usu- 

 ally be a slight balance due to shrinkage, or to error in esti- 

 mating the tons produced or fed. Any balance remaining 

 in the account when no silage is on hand should be charged 

 to General Expense. At the close of the year, any silage on 

 hand is carried down as an inventory. If it is apparent 

 that the quantity expressed by the book value at the close 

 of the year does not correspond with the quantity in the 

 silo, an adjustment should be made between Silage and 

 General Expense account in such a way as to bring the 

 Silage account into harmony with the physical valuation 

 of the silage. 



Fodder. The cost of corn fodder is determined and 

 entered in the same way as described for silage, being car- 

 ried through Corn account and charged to fodder at mar- 

 ket price of September corn. It is credited at the cost price 



