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1. This Form No. A-1 should be prepared as soon as the contractor can complete his net settlement proposal."

2. Where schedules provided do not provide adequate space, attach schedules in similar form.

3. Contractor's Own Charges.-Contractor should attach latest copy of Contractor's Own Charges (Form B-1 or B-2) as filed with the contractor or Government representative who rendered Notice of Termination. "Contractor's Settlement Proposal" copies of inventory schedules showing all disposal credits should also be attached.

4. Adjustments-Schedule A-1-a should be used to explain all adjustments made by contractor to items included in attached Form B-1 or B-2. 5. Post Termination Charges.-Should be listed in reasonable detail in Schedule A-1-b with appropriate explanation.

6. Settlements With Subcontractors.-This item includes all settlements with subcontractors. Subcontractors' claims may be submitted as soon as they are examined and settlements negotiated. In such cases, the settlements should be listed on a schedule made up with the same headings as shown in Schedule A-1-c. Each such schedule with subcontractors' proposals attached must be accompanied by a certificate as to the examination made by the contractor, and the opinion of the contractor as to the reasonableness of the proposals. The type of certificate to be presented should

conform to the applicable portion of the certificate shown on this Form No. A-1. In preparing Schedule A-1- under such circumstances, it is necessary only to list the totals of schedules previously submitted. Subcontractors settlements not previously submitted should then be listed in detail to bring the total amount of this schedule (A-1-c) into agreement with the amount listed as item 5 in the summary.

7. Disposal Credits.-The amount shown here should represent the total of the individual disposal credits listed on the inventory schedules. Each inventory sheet should be totaled separately and a listing of the page totals should be prepared to show the source of the total (Line 8 of Summary) used on the summary.

8. Advance Payments-Attach copy last report covering advance pay. ments account, if any, bringing account transactions to current date.

9. Other Credits-List all other credits. Where statement is on a total cost basis, any payments made for completed units after the filing of the Form No. B-2 should be listed here.

10. Subcontractors may include on line 14 any amounts applicable to finished units completed at date of termination but not otherwise billed. In that case, the inventory and any applicable disposal credits should be listed on a separate sheet of the C-1 Form with the headings appropriately modified. The total of these disposal credits should be shown on line 15 of the Summary.

General Instructions for preparation of Settlement Proposals and for the use of these forms should be
procured from the Government representative or contractor from whom the termination notice was
received.
U. 8. GOVERNMENT PRINTING OFFICE 10-39409-1

Back

Figure 1. Form No. A-1 (W. D., A. G. O. Form No. 242)-Continued.

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The undersigned certifies that, to the best of its knowledge and belief, the summary of charges and supporting schedules and explanations have been prepared from the books of account and records of the undersigned in accordance with recognized commercial accounting practices; that they include only those charges allocable to the terminated portion of this contract; that the charges as stated are fair and reasonable; and that they have been prepared with knowledge that they will, or may, be used by contracting officers acting on behalf of the United States as the basis of settlement with the undersigned or with others. Young Manufacturing Company

CHIEF ACCOUNTING OFFICER:

(Signature) Controller (Tale)

SCHEDULE No. B-1-a

By

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In the space provided on reverse, or on an attached sheet, show in a manner conforming to the contractor's accounting system:

(1) Composition of Indirect Factory Expenses Before Allocation to Inventory. Show beginning and ending date of period used. (2) Description of Bases Used in Allocating the Above Indirect Factory Expenses to the Inventory.

(3) Calculation, to the extent practicable, of Indirect Factory Expenses Applicable to Inventory in Accordance with Bases Indicated in (2).

NOTE.-The paper on which this form

printed can be used for reproduction by liquid process duplicating machines.

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In the space provided on reverse, or on an attached sheet, show information relating to General and Administrative Expense of the same type as is required in Schedule B-1-a, above.

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Use this space for information required in Schedules B-1-a and B-1-b or for other purposes
Schedule B-1-a

Indirect Factory Expenses in Work in Process
1. Indirect factory expenses for six months
ended 30 April 1944:

Factory supervision and

administration

Schedule B-1-b

General and Administrative Expenses

1. General and administrative expenses for six months ended 30 April 1944:

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Indirect labor

761,310.86

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1. This Form No. B-1 is to be prepared as soon as all cost information on inventory schedules can be completed.

2. When schedules provided are too small, attach other schedules following the same form.

3. Inventories listed on lines 1, 2, and 3 should be supported by the "Contractor's Schedule" copy of inventory schedules. Where cost information was not available at the time "Property Disposition" copies of the inventories were filed, such cost information must be subsequently listed on the "Contractor's Schedule" copy.

4. Include in Other Costs (Line 5 of Summary and Schedule B-1-) all costs to date of termination applicable to uncompleted portion of contract not previously included. When costs are included for loss of useful value of production equipment or facilities of the type specified in Section 1 (f) of the Statement of Principles for Determination of Costs Upon Termination of Government Fixed Price Supply Contracts, attach a statement explaining the determination of the charges.

3. In Schedule B-1-d, show the bases and computation of any profit ⚫included on line 7 of the summary.

General Instructions for preparation of Settlement Proposals and for the use of these forms should be
procured from the Government representative or contractor from whom the Termination Notice was
received.

§. 8. GOVERNMENT PRINTING OFFICE 10-99407-8

Back

Figure 2. Form No. B-1 (W. D., A. G. O. Form No. 245)-Continued.

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Figure 3. Form No. C-1 (W. D., A. G. O. Form No. 247).

INSTRUCTIONS

1. PREPARATION OF SCHEDULE-The number of copies to be prepared will be specified by the Government representative or contractor from whom the Termination Notice was received. Columns 1 through 11 should be filled in immediately on all copies to the extent practicable without unduly delaying submission of the inventory schedule. Columns 6 and 7 will not be filled in for Government-owned property. The inventory schedules will be used for the following purposes:

PROPERTY DISPOSITION COPIES are to be mailed to the Government representative named in the Termination Notice (if you are a prime contractor), or to the contractor from whom you received Notice of Termination (if you are a subcontractor) as soon as the inventory information has been entered.

CONTRACTOR'S OWN CHARGES SCHEDULE COPY is to accompany your charge schedule (Form B-1 or B-2). It will not be necessary to prepare this copy for Government-owned property.

CONTRACTOR'S SETTLEMENT PROPOSAL COPIES, one of which is the original, will accompany your Contractor's Settlement Proposal (Form A-1). By this time, such inventory as will be disposed of by your firm will have been sold, retained, or otherwise disposed of and the disposal information entered in columns 12 and 13 as provided in the columnar instructions.

CONTRACTOR'S FILE COPY should be maintained for your records showing the same information as the original.

CERTIFICATE

This is to certify that the inventory described on the face of this schedule consists of items properly allocable to the contract, that the quantities are not in excess of the reasonable quantitative requirements of the terminated portion of the contract, and that the offers indicated in column 11 are fair and reasonable in the opinion of the undersigned.

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Column 1-LINE NUMBER-Number each entry in sequence. This will facilitate necessary references in case of adjustments, disposal actions, etc.

Column 2-DESCRIPTION.-Specific instructions as to the method of listing, and the detail of description will be furnished by the Government representative or contractor from whom the Termination Notice was received.

Columns 6 and 7-UNIT AND TOTAL COSTS-An explanation of your method of computing costs should be attached to the original and to the copy accompanying your cost statement. This explanation should cover your treatment of transportation and discounts, and should also explain whether "first-infirst-out" or some other method is used.

Column 8-RECOMMENDED DISPOSAL-Whenever practicable, give your recommendation for disposal of those items you do not wish to retain. Use following code:

D-Sell to distributors.

M-Sell to manufacturers.
P-Public sale on bids.

W-Sell to other war contractors (name on attached
statement).

V-Sell to original vendor.

S-Scrap (reasons to be set forth on attached state-
ment).

X-Other recommended method. (Explain on attached
statement referring to proper item number.)
Recommendation should represent your opinion of the method
which will move the property with greatest speed consistent with
the best interest of the Government as to price and other appro-
priate factors.

Column 9-ENTER OPA CEILING OR MARKET PRICE PER UNIT IF
PRACTICABLE.—If ceiling price is used, indicate by letter "c"
before price, thus "e12.50."

Columns 10 and 11-CONTRACTOR'S OFFER.-Any offer for inven-
tory for an amount less than your cost must be explained on
an attached statement. Such explanations should include
reference to line number and page number to facilitate
identification.

Columns 12 and 13-DISPOSAL CREDITS.-Materials retained,
returned to supplier, or otherwise disposed of. These credits
are to be recorded on the copy of this schedule which is sub-
mitted with the Contractor's Settlement Proposal (Form
A-1), and on the Contractor's File Copy.

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