(b) Page 2 of Format 803-9.
INSTRUCTIONS FOR USE-TERMINATION INVENTORY SCHEDULE (Short Form)

FOR USE WITH FORMAT 802-3 ONLY

A. CLASSIFICATION.-No specific classification required but similar items
should be grouped together. Several classifications may be listed on one
form.

or components, common in nature to both the terminated contract and other work of the contractor, are not to be listed except for iteras the delivery of which has been required by the Government and except for Governmentfurnished property (See Inventory Schedule Certificato.)

1. DESCRIPTION (Column b).- A full commercial description is required
for all items which have commercial value for other items, furnish only
wuch description as is sufficient to enable the contracting officer or the cus-
tomer to determine the appropriate disposition.

F. PROCEEDS OF AUTHORIZED SALE (Column 9).-Insert the letter "A" after the amount if the sale for credit for acquisition) has been authorized or approved by the contracting office or customer. Insert the latter "C" if the amount represents your offer to acquire or sell.

In either cou quantity should be also shown (on a second line) if less than the full quantity shown in Column d.

C. CONDITION (Column c).-for purposes of indicating condition of mo.
terial, the code indicated below should be used. It requires the combing.
fion of a lotter and a number in soch instance las El or N2). Use the
letter "X," without a number for material considered to have no further
value for vse os originally intended, but of possible salvage value other
than at krop. I considered krop, insert on "S."
CODE: N-Now

1-Excellent
-Used-reconditioned

2-Good -Uvod-wable without repairs

3-fair -Vred-repairs required

4-Poor

G. GOVERNMENT-OWNED PROPERTY

(al Government-furnished property should be listed on separate shoon, marked to show that the items are Government-furnished.

(b) Where title to materials purchased by the contractor is vosted in the Government, such materials should be listed ond cost data supplied.

D. COST (Columns • and 1). -Any generally recognized basis for conting
inventory may be used, provided it has been regularly used by the con-
tractor and properly reflects his costs.
E. COMMON ITEMS.-Any items of inventory reasonably viablo, without
low to the contractor on his other work, because they are materials, porta

M. MISCELLANEOUS

(o) Separate Schedules. If the space provided for any information called for is insufi antoch reparate supporting schedules.

(b) Nywhes.-The number of sets of inventory schedules ro quimper Feindiepted by the contracting officer or the customer from

tha Hatip of thepiration is received.

SPECIMEN

(b) Page 2 of Format 804-1.

I. AS THIS SETEMENT MOPOSAL BASED ON STANDARD COSTS YES ONO. IF "YES," HAS ADJUSTMENT TO ACTUAL COST OR ADJUST.

MENT FOR ANY SIGNWICANT VARIATIONS BEEN MADE? YES NO. "No," EXPLAIN

. DOES THIS PROPOSAL INCLUDE CHARGES FOR MAJOR INVENTORY ITEMS AND CLAIMS OF SUBCONTRACTORS COMMON TO THIS TERMINATED

CONTRACT ANO OTHER WORK OF THE CONTRACTOR? YES NO. IF "YES," EXPLAIN THE METHOD USED IN ALLOCATING AMOUNTS TO
THE TERMINATED PORTION OF THIS CONTRACT

10. EXPLAIN BRIEFLY YOUR METHOD OF PRICING INVENTORIES, INDICATING WHETHER MATERIAL HANDLING COST HAS BEEN INCLUDED IN

CHARGES KOR MATERIALS

II. ARE ANY PARTS, MATERIALS, OR FINISHED PRODUCT, KNOWN TO BE DEFECTIVE, INCLUDED IN THE INVENTORIES? YES NO. IF "YES,"

EXPLAIN

12. HAVE ANY CHARGES BEEN INCLUDED IN THIS PROPOSAL IN RESPECTO SENTRANH. BISMS, OR SEPARATION PAY? YES NO. !

"YES," FURNISH BRIEF EXPLANATION AND ESTIMATES OF AMOUNTSUA

NANTS

SPECIMEN

13. DOES THIS PROPOSAL INCLUDE ANY ELEMENTOS PROFIT TO THE CONTRACTOR OR A RELATED ORGANIZATION, OTHER THAN PROFIT SET FORTH

SEPARATELY IN THE PROPOSAL OR INCLUDED IN THE CONTRACT PRICE AT WHICH ACCEPTABLE FINISHED PRODUCT, IF ANY, IS INCLUDED IN THE
PROPOSAL? YES NO. IF "YES," EXPLAIN BRIEFLY

MOOS

14. DESCRIBE BRIEFLY THE NATURE OF INDIRECT EXPENSE ITEMS INCLUDED IN INVENTORY COSTS (see Schedule A, Formal 802-1); AND EX.

PLAIN YOUR METHOD OF ALLOCATION USED IN PREPARING THIS PROPOSAL, INCLUDING IF PRACTICABLE, THE RATES USED AND THE PERIOD
OF TWE UPON WHICH THEY ARE BASED

13. DO THE COSTS SET FORTH IN THE ATTACHED PROPOSAL INCLUDE PROVISIONS FOR ANY RESERVES OTHER THAN DEPRECIATION RESERVES?

YES NO. IF "YES," LIST SUCH RESERVES

IVING

16. STATE METHOD OF ACCOUNTING FOR TRADE AND CASH DISCOUNTS EARNED, REDATES, ALLOWANCES, AND VOLUME PRICE ADJUSTMENTS,

ARE SUCH ITEMS EXCLUDED FROM COSTS CLAIMED? O YES NO

GENEL KO

WHERE THE SPACE PROVIDED FOR ANY INFORMATION IS INSUFFICIENT, ATTACN SEPARATE SCHEDULES

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