COST ACCOUNTING 323 



2. Post all entries made, being sure to show details in ex- 

 planation columns of the field and productive accounts for later 

 analysis. 



3. Take a trial balance. 



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

 terest on investment for the year. This implies 4% on the value 

 of each class of livestock and on equipment as at the beginning 

 of the year. Post the entry. 



5. Make an entry for depreciation of equipment at 10% for 

 the year. Post the entry. 



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

 credits for feed consumed by livestock. Post the entry. 



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

 calculations. This may be done as shown under instruction 7, 

 problem 3. 



8. Calculate the hourly cost of labor. Using the hourly rate 

 just determined, and with the assistance of the Eabor Conversion 

 Table, Illustration 75, Appendix, calculate the value of labor for 

 each farm element. Record the amounts, for convenience, on the 

 paper as described under instruction 7, problem 3. 



9. Make a journal entry for the value of labor calculated in 

 instruction 8. Post the entry. 



10. Calculate the hourly cost of horse labor. Using the 

 hourly rate just determined, calculate the value of horse labor 

 for each farm element. Record the amounts, for convenience, 

 on the paper as described under instruction 7, problem 3. 



11. Make a journal entry for the value of horse labor cal- 

 culated in instruction 10. Post the entry. 



12. Calculate the cost per hour of maintaining equipment 

 during the year, as explained under instruction 12, prob- 

 lem 3. 



Using the hourly equipment rate as just determined, make 

 an entry as described under instruction 12, problem 3, to dis- 

 tribute the expense over the various farm elements. Post the 

 entry. 



13. Calculate and enter the inventories or deferred charges 

 to field accounts which are to be carried over to next year's 

 operations. 





