INTERPRETATION OF COST ACCOUNTS 355 



It should be observed in studying Illustration 64 that 

 the result designated as " (1)," cost of production for the 

 year, $674.21, is the sum of the items above it. Also, it is 

 important to note that a very essential verification of this 

 figure (1) may be made from the Corn account, as follows: 



From Field No. 5 (1,109^ bu.) $285.56 



From Field No. 6 (1,216 bu.) 306 . 85 



From Field No. 7 ( 300 bu.) 81 . 80 



Cost of production for the year $674 . 21 



Result (4) in Illustration 64 takes the place of five items 

 in the Corn account, under date of Feb. 28, 1918. Other 

 results in the Comparative Analysis of Illustration 64 not 

 reduced to a unit basis correspond to other figures in the 

 Corn account, the net gain of $2708.91 being the aggregate 

 result in both cases. 



In an analysis of any account, it is essential that all 

 items in the account be considered, and that the result 

 obtained in the analysis be the same as the result in the 

 account. 



In order to bring out more clearly the relation between 

 the Corn account of Illustration 63 and its analysis in 

 Illustration 64, the correlation is presented in outline form 

 in Illustration 65. 



A study of Illustration 65 together with Illustrations 63 

 and 64 reveals the fact that the Comparative Analysis of 

 Corn Account uses all of the figures of the Corn account, 

 but merely presents them in a different form and with some 

 of the amounts subdivided to show more of the details. 

 The figures in parentheses, in Illustration 65, as (11), (9), 

 (10), etc., refer to the corresponding numbers of items in 

 Illustration 64. The amounts shown in Illustration 65 are 

 exactly the same as those in Illustration 63, Corn account, 

 and are in the same order. 



