COST ACCOUNTING 299 



figures for the horse labor record in question, the Equipment 

 Expense account balance would be divided by 2681. Assume that 

 this division gave a result of .053, meaning that 5 cents to the 

 nearest integral cent was to be charged for every hour the 

 equipment was in use. The amounts to charge to the various 

 accounts would be: cattle, 798 times .05; Field Ro. 1, 284 times 

 .05; Exchange Labor 157 times .05 and so on. 



(b) Make a journal entry expressing debits to the various 

 accounts shown in the horse labor record and crediting Equip- 

 ment Expense and Exchange Labor accounts with the amounts 

 obtained in (a) above. Post the entry. (Since there is no inven- 

 tory of Miscellaneous Supplies, in this problem, to affect Equip- 

 ment Expense, the latter account would now be in balance with 

 no inventory to carry down, if it were not for the fact that the 

 fractional part of a cent was disregarded in the hourly rate.) 



12. Make entries in the cash journal, closing any balances 

 remaining in Labor, Exchange Labor and Equipment Expense 

 accounts into General Expense account. Post the entry. 



13. The inventory of mill feed is $15. Record this in the ac- 

 count. Any balance left represents shrinkage or error in re- 

 cording feed, and is to be transferred to General Expense ac- 

 count by entry in the cash journal. Post the entry, rule off the 

 Mill Feed account and bring down the inventory. 



14. Close Interest account into General Expense. Distribute 

 the general expenses over the various productive elements by 

 journal entry, crediting General Expense account with enough to 

 close it and debiting each of the accounts representing produc- 

 tive elements with its fair share. For the purpose of securing 

 uniformity charge the productive elements with the following 

 proportions of the total: Cattle 5%, hogs 1%, poultry 3%, 

 sheep 2%, oats 25%, hay 17%; corn 40%, wheat 1%. Post 

 the entry. 



15. Make entries direct in the accounts for the following in- 

 ventories: hdusehold furnishings $500; horses, $1100; cattle, 

 $570; hogs, $240; poultry, $25; corn, $830; oats, $350; hay, 

 $290. 



Transfer any balances remaining in the productive, Household 



