COST ACCOUNTING 315 



3. Take a trial balance. 



4. Calculate and make an entry in the cash journal for interest 

 on investment for the year. This implies 4 per cent, on the 

 value of each class of livestock and on equipment as at the be- 

 ginning of the year. Post the entry. 



5. Make an entry for depreciation of equipment at 10 per cent, 

 for the year. Post the entry. 



6. Make an entry in the cash journal to express debits and 

 credits for feed and bedding consumed by livestock. Post the entry. 



7. Place the labor and horse labor hours in order for further 

 calculations. This may be done in the place ordinarily reserved 

 for these records in some such form as this: 



Labor Summary 



Hours Value 



Cattle 710 



Horses ; 500 



etc. 



etc 



(440) 

 6480 



Horse Labor Summary 



Value of 

 Hours Value Equip. Exp. 



Cattle 105 



Swine 80 



etc. 



Total ^20) 



/ ( ; 

 I 7,: 



8. Calculate the hourly cost of labor. This is done by divid- 

 ing the total cost of labor for the year by 6480, the number of 



