h Under “Purchases” are entered the cost values of all merchandise sent to the various departments, that is, the difference between the footings of the Dr. and Cr. columns referring to each department on Form 13 (Cost Price). No cash discount is considered.
i Under “Labor”, charge each department with its proper share of the wages paid by the Exchange. If any employee divides his time between two or more departments, his wages should be distributed between said departments proportionately. Book-keeper’s wages should be charged to Office. To counterbalance this charge, some Exchanges credit all cash discounts to Office instead of taking them up under Other Income. This is entirely proper, as is also the procedure of crediting the Office with mail order profits, etc. In the usual case, there being no accrued wages, the figures for labor are taken from the Labor column in the cash book.
j Under “Maintenance”, transfer from the cash book all amounts paid out for
- (1) Articles bought to replace other similar articles worn out.
- (2) Paints, cleaning material or repairs and spare parts, etc.
- (3) Labor charges in connection with the foregoing.
- (4) In general, any expenditure for up-keep.
k Under “Board”, should be entered all amounts paid out for board of employees.
l Under “Expense”, enter the value of all expendable supplies issued to the various departments, such as paper bags, etc., or, as illustrated in the case of a Laundry, the cost of all soaps, starch, soda, etc.
m Add items (g) to (l), inclusive, and enter the totals on the proper line. Also, add the items horizontally and check the grand totals obtained by these two operations.
n Enter under “Deduct Inventory”, the cost price of all articles found on hand in the various departments at the end of the month.
o Subtract (n) from (m) and enter the respective remainders in the spaces for “Cost of Goods Sold”. Check these remainders vertically and horizontally.