2. Register of orders executed, with specifications and prices.
3. of customers, with information as to their financial standing.
4. Register of orders issued for the supply of raw materials to warehouse.
5. Register of invoices.
6. Register of estimates for manufacture of goods.
7. Register of orders issued for manufacture of goods.
8. Register of goods manufactured.
9. Register of goods despatched.
10. Register of plant, and values thereof.
The above may assume various forms, and the use of the card index or card ledger system is useful for many of them, e.g., register of orders executed.
(b) Warehouse (raw materials).
1. Register of stores received.
2. Register of stores issued to works.
3. Register of stores returned to vendor.
4. Register of stores returned by works (being in excess of actual requirements for any particular order).
5. Stores ledger; recording stores received, issued, and on hand, and written up from the preceding four registers.
All the foregoing are kept, in quantities and at monetary cost, classified under description of goods. All stores purchased and issued should pass through the above books, even though they may be delivered direct to any particular job, and for the correctness of quantities and prices the storekeeper should be responsible.
(c) Warehouse (manufactured goods).
1. Register of manufactured goods received from factory.
2. Register of ready-made goods purchased.
3. Register of goods issued in execution of customers' orders.
4. Stock ledger; written up from three foregoing registers.
The foregoing are kept in quantities, and the monetary valuation em ployed is in every case the cost ; the latter is obtained from the cost ledger in the costing department. All goods manufactured should pass through the warehouse books, even though their issue therefrom be simultaneous with their delivery to the warehouse keeper.
(d) Timekeeper.
1. Time books.
2. Summaries of wages paid and their allocation to different orders for manufacture of goods.
3. Registers of employees and their rates of wages.
(e) Cost department.
1. Estimates of cost of manufacture of parcels of goods, or of specific articles.
2. Summaries of wages, and expenses used or incurred in manufacture of specific parcels of goods 3. Cost ledger; this is written up from the two foregoing classes of statement, and such other information as may be necessary. An account is opened for each parcel of goods as its manufacture is commenced, and to this account are debited a due proportion of all expenditure incurred. Upon completion the total of a
parcel cost forms a basis for entry of the finished stock in the warehouse-keeper's books, and the account in the cost ledger should be closed. The total balances of the accounts open at any one time thus supplies the valuation of " work in progress" required for the manufacturing account.
Additional books will be necessary in many cases, and may be drawn so as to suit individual requirements. The statistical books, recording the history and position of assets, should as far as possible be made to har mo:iise with, and explain, the accounts recording those matters in the financial ledger, e.g.— The " Register of plant " explains the " plant and machinery" account in the impersonal ledger.
The " Stores ledger" gives and explains the amount of "stores in hand" in the trading account, and the total money balances on the stores ledger should equal the valuation yielded by a stocktaking.
The "Stock ledger" similarly gives and explains the balance of stock on hand.
The " Register of manufactured goods issued" explains the " sales journal," &c.
If the cost of manufacture of goods be accurately computed, a separate journal (part of the system of accounts) can be kept to record the cost of each parcel of goods transferred to stock, and the " total cost of goods produced," i.e. the total of this journal, can at any time be inserted in the manufacturing and trading accounts. If the other analogous journals (sales, purchases, &c.) are also posted in their respective accounts, it will be possible to prepare a profit and loss account and balance sheet at any time, without the necessity of a stocktaking, as follows : 1. Manic hcturing account.
The balance of manufacturing account (after crediting cost of goods manufactured) will represent the value of stock of raw material on hand, plus the value of work in progress ; the former figure can be obtained from the stores ledger, and the latter from the cost ledger.
Q. Trading account.
The value of manufactured goods on hand, for purposes of the trading account, can be obtained from the stock ledger, and the trading profit will be such amount as is necessary to cause the two sides of the trading account to agree, after the inclusion of this item.
a Profit and loss account.
The deduction of balances of expense accounts from the trading profit shown by the trading account, will give the net profit.
See FACTORY ORGANISATION; COST ACCOUNTS.