(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. Soveral classifications may be listed on ong form.

or components, common in nature to both the terminated contract and other work of the contractor, or 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 Certificate.)

I. DESCRIPTION (Column bl.- A full commercial description is required for all items which have commercial value. For other items, furnish only such description as is sufficient to enable the contracting officer of the customer to determine the appropriate disposition,

F. PROCEEDS OF AUTHORIZED SALE (Column 9).- Insert the latter "A" after the amount if the sole (or credit for acquisition) has been authorized or approved by the contracting officer or customer. Insert the letter "C" if the amount represents your offer to acquire or sell. In either con quantity should be also shown (on a second line) if less than the full quon tity shown in Column d.

C. CONDITION (Column ().- for purposes of indicating condition of mo-
terial, the code indicated below should be used. It requires the combing-
Non of a letter and a number in soch instance (as E4 or N2). Use the
lotter "X," without a number for material considered to have no further
volve for use os originally intended, but of possible salvage value other
than as krop. It considered scrap, insert on "S."
CODE: N-Now

1-Encollant E-Used-roconditioned

2-Good 0 --Ured--usable without repairs

3-Fair R-Used-ropains required

4-Poor

G. GOVERNMENT-OWNED PROPERTY

(a) Government-furnished property should be listed on separate shoots, marked to show that the items are Government-fumished.

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

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

H. MISCELLANEOUS

(a) Separate Schedules. If the space provided for any information called for is insulin attoch soporate wpporting schedules.

(b) Nyaralapis. - The number of sets of inventory schedules to quinol Fe indicated by the contracting officer or the customer from

of the otip of thiption is received.

SPECIME

471

CIMEN

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

CONTRACT AND 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 FOR MATERIALS

11, ARE ANY PARTS, MATERIALS, OR FINISHED PRODUCT, KNOWN TO BE DEFECTIVE, INCLUDED IN THE INVENTORIES?

EXPLAIN

YES NO. IF "YES,"

12. HAVE ANY CHARGES BEEN INCLUDED IN THIS PROPOSAL IN RESPECTO SERA

"YES," FURNISH BRIEF EXPLANATION AND ESTIMATES OF AMOUNTS UN CURED

RASMUSAY, OR SEPARATION PAY? YES NO. !

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 PROPOSA!? YES NO. IF "YES," EXPLAIN BRIEFLY

MOOSE

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 TIME UPON WHICH THEY ARE JASED

Al BGN

15. 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

VINCAN

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

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

2

(d) Page 4 of Format 804–1.

23. METHOD OF RECORDING AND ABSORBING (9) GENERAL ENGINEERING AND GENERAL DEVELOPMENT EXPENSE AND (2) ENGINEERING AND

DEVELOPMENT EXPENSE DIRECTLY APPLICABLE TO THE TERMINATED CONTRACT

24. TYPES AND SOURCE OF MISCELLANEOUS INCOME AND CREDITS AND MANNER OF RECORDING IN THE INCOME OR THE COST ACCOUNTS SUCH

AS RENTAL OF YOUR FACILITIES TO OUTSIDE PARTIES, ETC.

25. ARE COSTS AND INCOME FROM CHANGE ORDERS SEGREGATED FROM OTHER CONTRACT COSTS AND INCOME?

SY WHAT METHOD?

26. ARE SETTLEMENT EXPENSES APPLICABLE TO PREVIOUSLY TERMINATED CONTRACTS EXCLUDED FROM THE ATTACHED PROPOSALS? YES NO.

IF "NO" EXPLAIN

27. STATE POLICY AND PROCEDURE FOR VERIFICATION AN NICONTRE

REMENTS WITH SUBCONTRACTORS AND VENDORS

SPECIMEN

20. METHOD OF COMPUTING PROFIT CLAIMED IN THE ATTACHED PROPOSAL AND REASON FOR SELECTING THE METHOD USED.

MATE OF AMOUNT OR RATE OF PROFIT IN DOLLARS OR PERCENT ANTICIPATED HAD THE CONTRACT BEEN COMPLETED

FURNISH ESTI

29. WHAT IS LENGTH OF TIME (production cycle) REQUIRED TO PRODUCE ONE OF THE END ITEMS FROM THE TIME THE MATERIAL ENTERS THE

PRODUCTION LINE TO THE COMPLETION AS THE FINISHED PRODUCT?

30. METHOD OF ALLOCATING GENERAL AND ADMINISTRATIVE EXPENSE

CERTIFICATE
I HEREBY CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE AND BELIEF, THE ABOVE STATEMENTS ARE TRUE AND CORRECT.
NAME OF CONTACTOR

DY (Signature of superrisory accounting oficial)

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