330 FARM ACCOUNTING 



calculations. This may be done as shown under instruct i 

 problem 3. 



8. Calculate the hourly cost of labor, and the total value of 

 labor on each farm element for the year. 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, and the total 

 value of horse labor on each farm element for the year. 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. I't.st (lie entry. 



12. Distribute, by journal entry, the building expenses over 

 the various elements usin_r them, according to the following 

 rather arbitrarily seleob-l \ Household, 20%; swim-. 

 10%; cattle, 15^; horses, 25%; poultry. ;V; ; corn, 5%; 

 silage, 5%; equipment expense, 5^ ; hay 10%. 



13. Calculate the co>t per hour of maintaining equipment 

 during the year, as explained under instruction 12, problt 



Make an entry to distribute the expense over the variou* 

 farm element-*. di-re^ardim: any charge that might be made to 

 Building Expense. Post the entry. 



14. Calculate and enter the inventories or deferred charges 

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

 operations. 



In Field No. 1 consider that 20% of the $90 original de- 

 ferred charge was absorbed by the current year. This 1 

 only W f 'f . or $9, to carry down. Consider aUo that 40% of the 

 $20 for manure was absorbed ilnriiiir this the first year of its 

 application. This leaves $60%, 'or $11', to carry down. 



Do not overlook the labor, horse labor and equipment use 

 items in Field 'No. 2 for 1918 crops. 



1 In order to provide for the proportion of building expense charge- 

 able to horses but not yet entered in the account, add one cent to the 

 hourly rate -otherwise calculated. A 21 cent rate is, therefore, the 

 one to apply. 



