페이지 이미지
PDF
ePub

(i.) Combing and Woollen and Worsted Spinning

Departments. The quantities of work done, and the trade charges therefor, in these departments may be abstracted from the Stock and Cost Books (see Forms 6, 7 and 8); the supplementary columns being added for this purpose. (ii.) Winding, Warping and Sizing.

This work is in many cases paid for by the piece, and the quantities are consequently recorded for the purpose of calculating the wages : these records should be made in permanent form. Even where timeworkers are employed the quantities are necessarily weighed before being handed out to

There is, therefore, no difficulty in making returns of work done. Where the charges for Warping, Winding and Sizing are separately entered in the Piece Cost Book, Form 14, the prices may be obtained therefrom.

weave.

(iii.) Weaving Department.

In costing piece goods the processes of putting up and weaving are often charged at double the weaver's wages, and in such cases the value of work done is readily ascertained by doubling the aggregate of the weavers' wages. The charge for goods woven in fast looms is sometimes calculated at two and a half times the weaver's wages. Although this method of calculation is not universal the weaver's wages usually forms the basis of the charge. (iv.) Scouring, Milling, Fulling, Dyeing, Finishing, Mending,

&c. Much of this work is paid for by the piece, and the quantities recorded for wages paying may be utilised. The number of pieces passing through the processes may, of course, be ascertained from the Piece Making Book. Where the charges for these processes are separately entered in the Piece Cost Book, Form 14, the prices may be obtained therefrom.

When the Dyer misses the shade required and has to re-dye the material, he must not charge twice for his work unless he would be entitled, in the circumstances, to a double charge if he were trading apart from the concern.

The price for dyeing coloured yarns is often averaged, excepting blacks and blues.

The overlookers may be supplied with forms, where necessary, on which they may record daily the quantities of material or yarn, or the number of pieces operated upon in their respective departments. These records may be handed in to the counting house weekly and may there be entered up in permanent form.

It is unnecessary to give outlines for these weekly returns, but they should be ruled and printed in order to save as much writing as possible, and to secure uniformity they should supply the following information, viz: Date, description of material, quantity, trade price, colour, description of work or process, and any further essential particulars.

A Summary of the Work Done in all Departments should be entered up in the counting-house, in the same form as the Summary of Wages (see page 245).

Any serious leakage will be promptly brought to light by comparing weekly the work done with the wages paid in each department.

In many large concerns a weekly or monthly summary is prepared, according to Form 19, with a view to shew roughly what is known as the“ Machinery Profit” for the time being.

The amounts of wages and work done are obtained from the respective summaries.

The Material consumed can be readily ascertained in certain departments, but not in others (for instance, it is not practicable to take stock of dyewares at frequent intervals); consequently the material consumed must be omitted until stock is taken.

The Average of Standing Expenses is based upon the Departmental Accounts prepared in previous years.

The difference between the amounts in the columns headed Total Cost and Trade charges for work done represents either Profit or Loss.

A great desideratum amongst manufacturers is a simple method of approximating the result of their trading at brief intervals, and by this Summary the machinery or manufacturing profit is arrived at. The selling profit on goods sold for the time being may be abstracted from the Sales Day Book and Piece Cost Book.

STOCKTAKING.

Stocktaking is a very important feature in preparation for the Balance Sheet, and the greatest care should be observed in ascertaining and taking down quantities, in fixing prices, in calculating the items, and in casting up columns.

Very frequent errors find their way into balance sheets through the medium of the stock valuations, upon the correctness of which the financial books afford no check. All guessing at quantities and reckless estimates are greatly to be deprecated, since erroneous conclusions thus arrived at may entail

very

serious consequences. Quantities should, as far as possible, be verified with the Stock and Cost Books.

Calculations and additions should be made by one person and examined by another.

Prices may be fixed in ordinary cases on the following principles :

All goods purchased, such as Raw Material, Yarns, Dyewares, Chemicals, Soap, Oil, Size, &c., should be taken at cost price, plus carriage and any charges in connection with buying, such as broker. age, commission, &c. The usual discount allowed by the vendors should be deducted.

Goods in process of manufacture should be taken at the cost of the material, calculated on the above-mentioned basis, plus the usual trade (or country price) for the process or processes through which the goods have passed.

Manufactured Yarns and Tops may be taken at cost book prices (see Forms 6, 7 and 8, pages 263—265), less discount on the material.

The fluctuations in market value of material and yarns should be taken into account only where positive gain or loss has resulted therefrom. In determining whether gain or loss has actually accrued, regard must be had to the orders on hand which have to be executed, and the prices at which they have been accepted. Market values, however, will seldom form a reliable basis, and, except in cases of speculation or extraordinary fluctuations, cost prices should be adopted.

Piece Goods, finished and on order, may be valued at selling prices, a percentage being allowed to provide against the following deductions (w),

viz:

(i.) Interest for the term of credit. (ii.) The usual discount. (iii.) Possible claims, damages, shorts, &c. (iv.) The loss which may be incurred on goods returned. (v.) Agent's commission, Carriage (if not paid by customer), cost

of packing and delivery, and any special charges.

(w) To these deductions there might be added the average loss by Bad Debts,

Piece Goods, not on order, may be classified as

(i.) Ordinary saleable stock. (ii.) Job lots, and old and damaged stock. In valuing these, allowance must be made not only for the deductions referred to above, but also for the following, viz:(i.) Interest on the probable term that the goods will remain in

stock. (ii.) Tendency to depreciate in value. (iii.) Warehouse and Office expenses. (iv.) Selling Expenses.

(v.) Selling Profit. It must be remembered that profit is not made until the sale has been effected. Many of the above mentioned deductions are frequently overlooked; and there is, in fact, a very general disposition to overvalue Piece Stock.

The safest and niost effective method of valuation is to take down prices at which the goods can be sold without doubt, and then to allow a percentage sufficient to cover interest, expenses, deductions, and profit. This percentage should be the same at each stocktaking.

If preferred, saleable piece goods may be valued at cost price, calculated at the cost of the yarn plus the usual trade charges for the processes of manufacture (see Piece Cost Book, page 269), but the selling price is usually a more reliable basis.

Old and damaged stock of all kinds should be the subject of special reduction.

[blocks in formation]
« 이전계속 »