Welding shows a total cost of $209.64. The la bor, materials and time spent on welding jobs for cus tomers is such that $30.12 of cost is assigned to them, the remainder of $179.52 being the cost of patching up otherwise defective castings.
The total pattern cost is found to be $2,075.86, of which the labor and time spent on patching up old, worn and broken stock patterns warrants the assign ment of $624.32 to the cost of patterns made for cus tomers.
The total cost of good iron castings made is now found to be $40,499.20 or 2.629680 per pound. In like manner, the total cost of the 27,220 lbs. of good brass castings made is found to be $4,824.05 or 17.7224c per pound; of 1,752 lbs. of aluminum castings $604.53 or 34.5050; and 6,424 lbs. of miscellaneous products $68.80 or 1.0710 per pound.
17. Summary of cost and the total cost of finished goods made during July is computed at $47,478.24. On July 1, there were finished goods on hand which cost $9,843. Turning now to our eco nomic summary we first ascertain the individual gross profit on sales of each commodity handled. We do not show the schedules of the various expenses as the same data can be obtained from our expense distribu tion sheet.
The details of preparing the economic summary need not be discussed, as they will be apparent from an examination of the form on page 212. The bal
ance sheet is equally self-explanatory.
18. Closing are also ready to draft the closing entries. These appear on pages 2 to 5 of the journal. Comparison of them with the columns of the' working sheet shows how this working sheet guides the work of drafting these entries.
In posting these closing entries the names of the opposing accounts have invariably been inserted, partly to guide the reader, and partly to make each of the major operating accounts carry its own explana tion.
Finally, after the posting of the closing entries has been completed the general ledger accounts affected have been totaled and ruled off to show that they have been closed; balances and inventories were in serted where necessary to balance the accounts, and then brought down on the opposite side under date of August 1. A trial balance after closing completes the work. This trial balance, it will be observed, is practically the balance sheet.
In the pages which follow are given the journal ledgers, and the statements produced by closing the books which are referred to in this chapter.