22 BULLETIN 559, TJ. S. DEPA3TMEXT OF AGEICULTUBB. 



should balance, it will be well to prove the sheet by summarizing the 

 totals as in the following example. (See also Form No. 7, p. 32.) 



Payable by check patrons $639. 40 



Butter, patrons 187. 60 



Cream, patrons 3. 20 



Cottage cheese, -patrons 1. 35 



Supplies, etc., patrons 4.90 



Hauling, patrons 75. 30 



Previous overdrafts 3. 20 



Butter fat 1758. 60 



Skim milk 151. 25 



Current overdrafts 5 . 10 



(Forwarded to next settle- 

 ment sheet.) 



Total 914. 95 



Total 914. 95 



After completing the summary, all items excepting those for 

 butter fat and skim milk should be transferred to their proper posi- 

 tion on the operating statement under "Distribution to patrons." 



COMPUTATION'S. 



In creameries where both skim-milk and butter fat are purchased 

 and where the skim -milk purchases can be traced to specific patrons, 

 the following computations may be found convenient: 



(1) When skim milk is purchased from certain patrons, the book- 

 keeper should determine what percentage of the gross amount dis- 

 tributable is represented by the skim-milk sales and should then 

 divide the "Balance for distribution" on that basis between butter- 

 fat and skim-milk patrons. 



(2) To determine the price to be paid for butter fat, divide the 

 amount distributable to butter-fat patrons by the total pounds of 

 butter fat as shown on the patron's settlement sheet. 



(3) To determine the price' to be paid for skim, milk, divide the 

 amount distributable to skim-milk patrons by the total pounds of 

 skim milk as shown on the patron's settlement sheet. 



Formulas covering these computations are shown as an appendix 

 to the operating statement. 



CHANGES NECESSARY UNDER PRIVATE MANAGEMENT. 



When this system of accounting is used in creameries operating 

 under private management, it will not be necessary to make up the 

 operating statement except as a statement of income and expenses 

 for the information of the management. If the price of incoming 

 products is ascertained in advance of the sale of manufactured 

 products, no computations will be necessary on the patron's settle- 

 ment sheet, which would be contingent upon figures derivable from 

 the operating statement. Individual preferences and methods of 

 operating under private management may require other minor 

 changes in the method and technique of bookkeeping as set forth 

 for the operation of this system in cooperative creameries, 



