COMPLETE SET OF COST ACCOUNTS 489 



bean crop would have been much larger. Instead of being 

 an argument for going into the apple business, these 

 results are an argument for going into the bean business. 

 Beans paid so well that they were able to carry an apple 

 orchard and yet pay. If one who figures in this way is 

 asked what it costs to grow an apple orchard, he would 

 have to say that it depends on the price of beans. 



The fair way to estimate the cost of an orchard is to 

 divide the work, land, and fertilizer between the two crops. 

 The proportion of the area in the crop should be estimated. 

 This is not necessarily all the land planted to the crop, be- 

 cause the trees may injure it. The proportion of the time 

 and fertilizer that the crop required should be charged to 

 the crop. The remaining charges should go to the orchard. 



A more useful way of figuring, if one has a limited area, 

 is to determine what he would make if all the land were in 

 crops, and compare it with what he does make when part 

 of the land is in apples. This may be unfair to the orchard, 

 but it points to the proper line of action. The farmer de- 

 sires that combination of crops which pays best. Merely 

 because some crop pays is not sufficient reason for growing 

 it, if there is something else that pays better. 



297. Interest. Interest paid out is put on one side of 

 the account and interest received, or charged to different 

 farm enterprises, is put on the other side. Any crop or 

 enterprise that uses much money or labor should pay in- 

 terest on this money until the product is sold or ready for 

 feeding. One must pay for labor, and feed horses while he 

 is planting wheat. This money is tied up for a number 

 of months. The wheat crop must pay interest on this 

 amount. If the accounts are handled, as in the set illus- 

 trated, interest is charged to the farm account on the in- 

 ventory value. The wheat pays rent enough to cover this 



