29 BULLETIN 559, U. 8S. DEPARTMENT OF AGRICULTURE. 
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.) 
uiber fatooic: 4... SH $758. 60'| Payable by check patrons. ..... $639. 40 
Shine rinlke isu) ok eee. 151.25 | Butter, patroms... 00.2 222.0.- 187. 60 
Current overdrafis. ...0...22..- do 10.,| Cream, patrons. cineca icinasiysre, jamal 
(Forwarded to next setile- Cottage cheese, patrons......... 1.35 9 
ment sheet.) Supplies, etc., patrons.......... 4.99 — 
Praline: partoms. "os. eee eee 75. 30 
Previous overdrafts. .......-.-- 3. 20 
{Rabe Kusama hdl gaelic Pern 914. 95 otal seo se eee 914, 95 
Aiter completing the summary, all items excepting those for 7] 
butter fat and skim milk should be transferred to their proper posi- 
tion on the operating statement under ‘‘Distribution to patrons.” 
COMPUTATIONS. 
In creameries where both skim-milk and butter fat are purchased 
and where the skim-milk purchases can be traced to specific patrons, 
the folowing 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 setile- 
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 munor 
changes in the method and technique of bookkeeping as set forth 
for the operation of this system in cooperative creameries. 
