48 BULLETIN 1044, U. S. DEPARTMENT OF AGEICITLTUEE. 



charged $7.50; but, through this adjustment, it would be credited 

 with $1 and 50 cents, being- a total of $1.50, leaving the net charge to 

 the merchandise account $6, which exactly corresponds with the sales 

 account. Differences could occur in these two accounts in only two 

 ways: (1) Some of the baskets might be taken without being paid 

 for; or (2) the clerk in filling the baskets might put more than 2 

 pounds in each. The latter situation could arise only if the selling 

 price had, been determined at 7^ cents per pound before the baskets 

 were made up and there were more than 100 pounds of tomatoes 

 in the lot charged in. If there were exactly 100 pounds all of the 

 50 baskets could not be filled, of course, unless the average quantity 

 of tomatoes in each was 2 pounds. 



If the retail value of the stock sold is kept by the four classes men- 

 tioned in connection with the spoilage record, i. e., fresh fruits and 

 vegetables, dairy products, cured meats, and other groceries, the per- 

 centage of spoilage for each class can be readily determined, as well 

 as the percentage of total spoilage. 



It is valuable to know the percentage of spoilage, since the per- 

 centage of mark-up can be more intelligently arrived at after an 

 examination of these records. It is believed that in the majority of 

 cases the percentage of loss through spoilage of fresh fruits and vege- 

 tables will be found to be less than is generally supposed. When this 

 is true it becomes possible to reduce the prices on these articles, which 

 in turn will tend to increase sales, and again reduce the loss through 

 spoilage. 



Form 5, page 52, headed " Stock Control Adjustment — D," can be 

 used in connection with chain-store organizations or department 

 stores where merchandise is often transferred from one branch to an- 

 other without a cash payment being made. Obviously, the entire re- 

 tail value of the transfer should be credited to the merchandise ac- 

 count; therefore, it is necessary only to multiply the number of 

 articles by the selling price per article to obtain this charge. Such a 

 form is needed, because under the ordinary chain-store management 

 no provision is made for adjusting the retail value of the purchases, 

 which must be done in order that each branch may keep its accounts 

 straight. 



After the stock-control data are assembled on the special forms as 

 described, they should be reduced to a single statement, somewhat 

 similar to the ordinary operating statement used by many concerns. 

 Form 6, page 52, is a convenient form for this purpose, and can be 

 used to great advantage in bringing out the information obtained in 

 such a way as to make it easily understood. All figures are at the 

 retail selling price. To the opening inventory should be added the 

 net purchases (purchases less transfers), and to the sum should be 

 added total mark-ups. The total will be the gross retail value of the 



