40 BULLETIN 811, U. S. DEPARTMENT OF AGRICULTURE. 
COST ANALYSIS. 
The Cost Analysis (Form No. 15, p. 47) lias 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 in 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 adequate: 
(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 gram 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. 
