This statement is kept on a monthly basis, one sheet a month, with one line for each day. At the end of each month totals and monthly averages are computed. Generally it will be found that the wheat (in pounds) is not entirely realized in flour or offal, the difference being called under-run (invisible loss). In some cases, however, the tempering process will so increase the moisture of the wheat as to result in a gain in pounds of production or an over-run (invisible gain). From the daily output and consumption record will be computed the statistics of yield and percentages for cost purposes. Further records will be kept of sacks purchased, on hand and used (by sizes and kinds); drafts drawn and paid; wheat received, shipped and used; flour produced, stored and shipped; flour sold and unit selling costs by salesmen; customers' accounts showing barrels of flour as well as dollars; other ledger accounts showing bushels and pounds as well as dollars-these in addition to the usual records and accounts found in any commercial enterprise. The present complicated organization of the milling industry with its purchasing, milling and selling divisions reflects our progress in civilization when compared with the old system where every farmer made his own flour by grinding wheat between two stones; and like our progress in civilization, the change has been a gradual one requiring a long period of time. It is only recently, however, that the question of accounts and records has assumed serious proportions. The flour miller, in common with other business men, has only in the last few years learned the value of good accounts. At the present time the miller has no choice; a good system of records has become absolutely essential, and there can be little question as to the future. Beset on all sides with rising costs, increased burdens of taxation and keener competition, the miller must learn to depend more and more upon his accounts. His accountant must be called upon frequently for advice and information. The result will be reflected in better business and better accounts. Exhibit A Schedule of accounts. Adapted to a medium sized flour mill having its own elevator. grinding wheat only and selling at wholesale exclusively. 141 Contracts for future delivery-flour. 142 Contracts for future delivery-offal. 15 Contingent assets. 151 Claims. 331 Reserve for contingencies. 332 Reserve for sinking funds. 333 Reserve for sacks. 334 Reserve for reduced output and inactivity. 34 Profit and loss-current year. 341 Dividends. 342 Income and excess profits taxes. 342 Appropriations of net profits. 4. Revenues. 3432 Sinking fund instalment. 41 Sales. 3433 Sack price fluctuations 3434 Reduced output and inactivity charge. 411 Flour. 412 Returns and allowances on flour sales. 414 Returns and allowances on offal sales. |