Paint, Oil and Drug Review Volume 68 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1919 edition. Excerpt: ...Costs Should Be Used. As it is impossible to refigure product costs with every market or invoice change, the manufacturer should fix a list of raw material costs to be used for the purpose of calculating formulae. This list should show what is considered to be the anticipated cost for the whole year or until such time as the costs are to be again figured. These calculating costs should include freights and determined percentages for storage and handling losses and charges, shrinkage, evaportion, etc. If there are no radical fluctuations during the period, no changes in the list are necessary. At the end of the period the actual cost of the quantity of each raw material so computed can be deducted from the calculated cost used in the formula; and the difference employed for the purpose of adjusting processing accounts where they are maintained. If there arc radical changes in the raw material costs on the calculating list, all costs should be refigured on fixed dates, and in making the adjustments in processing accounts, these intervening changes must be taken into consideration. For instance, if white lead is originally fixed at 9 cents on January 1st, raised to 9J on May 1st. reduced to 9 cents on September 1st, and then reduced to cents on November 1st, and the product costs are refigured on these dates, then the processing accounts should On May 1st be charged, On Sept. 1st, be credited, On Nov. 1st, be credited, with an amount necessary to bring the stock of white lead on hand on these dates to a net cost value of 9J4, 9 and 854 cents respectively. Debits and credits accrued in adjustments of processing accounts may be either entered in a reserve account for raw material costs, to be subsequently passed to general profit and loss, or...