COST ACCOUNTING 267 



latter two are of so little importance that they can be ig- 

 nored. If, however, a three-year fire insurance policy is 

 held, arrangement should be made to charge only one-third 

 of the total premium against the operations of each of the 

 three years. 



Manure. The several classes of livestock are given 

 credit for the value of the manure produced during the 

 year. As the manure is hauled from the barn yard, the 

 proper field accounts are charged. A fair value to place 

 on manure for purposes of these debits and credits is one 

 dollar a ton. 1 



If practically the same quantity of manure is produced 

 and hauled during a given year, the entries stated above 

 charging the field accounts and crediting the livestock ac- 

 counts are sufficient. When any considerable amount is 

 produced in excess of the amount hauled away, such ex- 

 cess should be considered as a deferred charge or inventory 

 for the proper livestock account. In this way the live- 

 stock account is credited with it in the year of its pro- 

 duction, and it is brought down in the account below the 

 double lines after closing, in the same way as the inven- 

 tory of livestock. The inventory thus carried down to the 

 debit side of the appropriate livestock account will be 

 balanced by a credit entry when the manure is hauled 

 away. 



As mentioned under the subject "Deferred Charges," a 

 given application of manure is not a cost of raising one 

 crop but several crops. It has been ascertained 2 that of 

 an application of manure 40% is consumed by the first 

 year's crop, 30% by the second, 20% by the third and 

 10% by the fourth. 



Extraordinary Losses and Gains. There are some ex- 

 penses and incomes on a farm that cannot be assigned di- 



1 U. S. Dept. of Agriculture Bulletin 511. 

 2 Montana Agricultural College Circular 43. 



