This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 Excerpt: ...the machines, gives a normal overhead expense rate to be applied to all work in that department. This rate remains constant until the end of the fiscal year. The following schedule shows the method to be used in establishing this rate: ESTIMATED FACTORY OVERHEAD, 1916. SHIPPING, SELLING, AND GENERAL EXPENSES An ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 Excerpt: ...the machines, gives a normal overhead expense rate to be applied to all work in that department. This rate remains constant until the end of the fiscal year. The following schedule shows the method to be used in establishing this rate: ESTIMATED FACTORY OVERHEAD, 1916. SHIPPING, SELLING, AND GENERAL EXPENSES An estimate of shipping, selling, and general expenses should be made at the beginning of the year. This amount divided by the estimated cost of the total completed work for the year gives a percentage for these items. Applying this rate to the factory cost of a job, the amount which must be added to factory cost to ascertain total cost is readily determined. The following schedule shows the method of arriving at this rate: ESTIMATED SHIPPING, SELLING, AND GENERAL EXPENSES. FOR YEAR 1916. Total Building Expense $ 1,200.00 Labor 1,500.00 Salaries 13,200.00 Officers' Salaries 4,800.00 Commissions 2,500.00 Advertising 1,500.00 Insurance 192.00 Taxes 215.00 Depreciation 200.00 Repairs 120.00 Delivery Expense 2,300.00 Discount on Sales 1,200.00 Reserve for Bad Debts 750.00 Miscellaneous Expense 325.00 Distribution Shipping Selling $ 600.00 $ 1,500.00 9,600.00 r.'."ZZ "'2"5oabo 1,500.00 12.00 15.00 100.00 50.00 75"66 ioaoo General $ 600.00 ""3"6oa66 4,800.00 180.00 200.00 100.00 70.00 2,300.00 1,200.00 750.00 150.00 $ 30,002.00 $ 2,352.00 $ 13,700.00 $ 13,950.00 Estimated cost of completed work, $120,000.00. Percentage on Cost 25% 2% 11.5% 11.5% "J" CONTROLLING ACCOUNTS The principles of double entry are carried out in connection with a cost system by means of what is known as "controlling accounts." The advantage of the controlling principle is that it puts the bookkeeper in position to check up the work...
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