40 BULLETIN 811, U. S. DEFARTMENT OF AGRICULTURE. 



COST ANALYSIS. 



The Cost Analysis (Form No. 15, p. 47) has been provided to 

 show the unit cost of handling grain and merchandise. The method 

 of preparing the statement is as follows: 



First, opposite Bushels of grain and value of coal and merchandise, 

 should be entered m the column headed Grain the total bushels of 

 grain handled; in the column headed Sales, coal, the total value of 

 coal sales; and in the column headed Sales, other merchandise, the 

 total value of such sales. Second, in the column headed Total, 

 enter the totals of all expense accounts opposite the proper captions 

 in the left-hand margin. Third, apportion the amounts, as judg- 

 ment and the books indicate, over grain, coal, and merchandise. 

 Some items will apply only to grain, while others may apply to all 

 sales. Fourth, foot the columns entering the totals opposite Total 

 cost of operation. Fifth, ascertain the per cent of total cost of 

 operation by dividing the total costs of operation for grain, coal 

 sales, and sales of other merchandise, by the total cost of operating 

 the business, and enter the quotients in the spaces provided oppo- 

 site "Per cent of total cost of operation." Sixth, ascertain the total 

 unit cost of operation for grain by dividing the total cost of operation 

 for grain by the total number of bushels handled. This will be 

 expressed in terms of cents and mills. In finding the total unit cost 

 of operation for coal and for other merchandise the same method 

 will be followed, but the result will be expressed in terms of per- 

 centage. 



BALANCING CASH WITH THE BANK. 



To prove the correctness of the cash entries for the month, the 

 following method will be found simple and £)^dequate: 



(1) Be sure that the Bank columns are correctly footed. 



(2) Determine whether the Bank deposits column agrees with the 

 bank pass book as to individual deposits. 



(3) Sort the returned checks, arranging them consecutively by 

 series. Compare the expense checks with the entries in the Bank 

 withdrawals column of the Cash Journal and the grain checks with 

 the entries in the Record of Grain Purchases, and ascertain which, if 

 any, are missing. List the numbers and amounts of all outstanding 

 (missing) checks for the next month's reference. Outstanding checks 

 may be listed either on an adding-machine tape or by writing them 

 into the cash book. The sum of the bank balance as shown by the 

 Ledger account, plus the total of the outstanding checks, should 

 equal the balance as reported by the bank. No error, however small, 

 should be ignored in comparing the balance of the bank account in 

 the Ledger with the balance shown on the bank statement. 



