COST ACCOUNTING 331 



Disregard any deferred charges in Field No. 3a. 



In Field 3b, also, the charge for manure is so small that it 

 may be disregarded. 



After crediting the inventories as suggested above, complete 

 the entries in the several field and crop accounts, to show the 

 total and unit costs of producing the crops in the fields. Bring 

 the inventories of fields down below the rulings. 



15. Transfer the balances of Equipment Expense, Labor and 

 Exchange Labor into General Expense account, ruling off the 

 accounts closed. 



16. Distribute, by journal entry, the general expenses over the 

 productive elements, using the following percentages for the pur- 

 pose of obtaining uniformity: cattle, 22%; swine, 15%; poul- 

 try, 1%; corn, 17%; oats, 15%; wheat, 5%; soy beans, 5%; 

 hay, 15%; straw, 5%. Post the entry. 



17. Make entries for the following inventories of livestock and 

 commodities on hand at the close of the year,, transferring, by 

 journal entry, to Loss and Gain account the balances of all ac- 

 counts open on the books that show either a loss or a gain. 

 This includes the balance of Field No. 5, which is an extraor- 

 dinary loss. Post the entries, making sure that all necessary 

 accounts are ruled off and balances or inventories brought down. 

 Inventories Feb. 28, 1918: Horses (10), $1250; cattle (17), $610; 

 swine (45), $900; poultry (100), $50; corn, 900 bu. at 48.5c 

 (cost), $436.50; oats, 1100 bu. at 40c (cost), $440; hay, 60 tons at 

 $6.32 (cost), $379.20; straw, 40 tons at $6.00, $240.00; silage, 75 

 tons at $9.21 (cost), $690.92; household furnishings, $400. 



INSTRUCTIONS AFTER CLOSING 



(a) Take a trial balance which will serve also as a Statement 

 of Resources and Liabilities as of Feb. 28, 1918. 



(b) Study the accounts carefully. Compare them with the 

 corresponding ones of the two preceding years. Scrutinize the 

 Loss and Gain accounts of the three years together. Do the 

 same with the three trial balances after closing. 



(c) Preserve the books, accounts and records for use in the 

 problems of Chapter X which call for further analysis of these 

 accounts. 



