COST ACCOUNTING 257 



The Pasture account is charged with any deferred debits 

 carried down from the preceding year, such as cost of seed- 

 ing, also with rent or interest on investment and any other 

 direct or indirect costs that might be pro rated to it at the 

 close of the year. The account is credited with the feed 

 obtained from it by the livestock. The value of the feed is 

 determined by considering the average amount that an 

 animal can consume in one day. Five cents a day for an 

 animal is considered a fair market value for pasture. The 

 term pasture-day is used in this connection. It means the 

 grazing by one animal for one day. If there are twenty 

 cattle in a pasture for each day of a standard month, there 

 would be 600 (20 x 30) pasture days for which to make an 

 entry. Considering a pasture-day as valued at five cents, 1 

 there would be expressed a debit to Cattle and a credit to 

 Pasture of $30 for the use of the pasture for the month. 



By-Products. An account called "By-Products" is used 

 for the purpose of recording the value of crop residues con- 

 sumed in the field by livestock after the crop has been 

 harvested. This condition arises when livestock is turned 

 into oats or wheat stubble or into corn stalks after husk- 

 ing. The livestock, obviously, should be charged for the 

 feed they obtain in this way. since it takes the place of 

 regular pasture or other feed. The question arises as to 

 what account to credit. Tfre account with "By-Products" 

 is the one which shows most clearly what the nature of 

 the income is. It cannot be called an income from the 

 crop for the crop cannot be considered as contributing 

 something which it never had. If the crop account is not 

 charged with the value of the stubble or corn stalks it 

 should not be credited when the latter are used to the ad- 

 vantage of the farm. An exception to the use of this 



1 During the year since war conditions affected prices so extensively, 

 the value of pasture rental is nearly double the figure quoted above, 



