ACCOUNTING RECORDS FOR COUNTRY CREAMERIES, 3 
each member in the association and indicates the amount of capital 
subscribed and paid by him to the association. Stock or member- 
ship shares may be made redeemable at their face value by the 
creamery at the time the member severs his connection with the 
association. Such stock or memberships should then be reissuable 
to active or new members. This plan will in a measure keep the 
ownership of the stock or memberships in the hands of resident 
members. : 
OPERATING METHODS. 
The methods employed in operating country creameries vary in 
certain particulars, necessitating also minor variations in accounting 
forms. Classified according to the principal types, these different 
methods of operation or forms of organization are as follows: Farmers’ 
cream stations, shipping to centralizers that are owned by either 
private or cooperative capital; creameries operated both as butter 
factories and as cream dispensing stations; and creameries operated 
exclusively as butter and by-product manufactories. 
The system of accounts described herein is not intended for simple 
cream stations, as these will require a much simpler form of account- 
ing, consisting mainly of a cream receipts form, a cash journal, and 
payment vouchers for the cream purchases. This system, however, 
is applicable to the other types, and it is not material whether the 
creamery manufactures all of its raw material or manufactures part 
and sells the remainder. 
Creameries manufacturing by-products, such as cottage cheese, 
condensed milk, casein, and milk sugar, on a large scale and located 
in large centers, are not intended to be covered by the system herein 
described. The specialized needs and complicated requirements 
of their business should be made the subject of special study before 
a system of accounts covering their needs is recommended. 
In creameries where cream or milk is purchased outright the 
methods of bookkeeping are not unlike those in other manufacturing 
concerns. The cost of the raw material is determined in advance 
of the sale of the manufactured product. This method is reversed 
in certain cooperative creameries. When it is the intention of the 
organization to pay back to the producer the entire monthly net 
income accrued from the sale of the manufactured product the cost 
oi the raw material is figured from the net amount distributable, this 
being the difference between the gross income and gross operating 
expense during a given period. The expenses may be computed 
upon the basis of overrun, or as a fixed charge per hundred pounds 
of butter, or according to various other permissible methods. The 
gross income comprises the returns from all products manufactured 
or sold during the given period. Under this second arrangement 
