34^ MANAGEMENT OF DAIRY PLANTS 



ledger, they are entered on Form XXXIII and remittance for 

 such sales are made when the amount is being deducted from 

 £imount due the patron for milk or cream. A ticket such as 

 Form XXIV is usually presented for such sales instead of the 

 general sales ticket. 



IV. Consignments. — Goods disposed of on consignment 

 may cause some confusion as the remittance is made later 

 and there is usually some shrinkage in weight from the time 

 the butter leaves the creamery until it is sold. The price 

 is also likely to change. The writer has found it most satis- 

 factory to make a sales ticket for such shipment the same 

 as for butter sold locally, figuring actual weight the day of 

 shipping and calculating the value on the same basis as that of 

 butter sold to local merchants. This entry is made on the sales 

 record. Another entry is made thereon when remittance has 

 been received. This record is of value to the creamery, also for 

 the reason that if the creamery is losing too much on butter 

 sold on commission, it may be advisable to establish local mar- 

 kets for the entire output. 



D. RECORD OF INVENTORY 



I. Monthly Record of Inventory. — If the monthly sales 

 constitute the sales of the product manufactured from the 

 monthly receipts of raw material, no more nor less, and if the 

 material on the purchase record includes such purchases as are 

 made only for the month's business, then the difference between 

 the total monthly sales as recorded on the sales record and the 

 total monthly purchases as recorded on the purchase record 

 equals profit or loss. This method, however, is impracticable 

 in business and therefore it will be necessary to consider the 

 monthly inventory when making out a report of monthly profit 

 and loss. 



The monthly record of inventory is furthermore of value for 

 the following reasons: 



1. For determining the amount of supplies used during the 

 month. 



2. As a guide for placing orders for supplies. 



