Page 173 - Plant design and economics for chemical engineers

COST AND ASSET ACCOUNTING 1 4 7

MANUFACTURING COST WORKS INVENTORY

Refining of crude product D For month ol January. 19L

Unrrs o n hand

Slfm of End of
nonrh month
Crude product D GdlOllS 13,cQO 11.m 1.5cKhl 150.ooo so 2187 P4l.Xoo s0.41xo .
Operating wages H‘XXS 0.0150 1,500 1.2500 1.975 0.01913
Operating supplies WI o.OOx9
Maintenance wages Hours 0.0250 2.500 2.m 5.lml 0.0500
Maintenance
materials IO.500 O.IO50
Utilities x.cNxl 0 . 0 8 0 0
Depreciation S investment 5.OcQo 5al.cm 0 . 0 1 0 0 J.003 0.0500
Overhead 3.xoo 0.03xo
Total cost and - - - - - -
production Gallons 5.cm 4.ooo lOO.CNXl SCo.1691 116.965 SO 1691

FIGURE 5-6
Example of one type of inventory account.

COST-OF-SALES ACCOUNT
Product E For month q/ Jww. 19-

This Last Year
Item month month to date

Sales, lb 475,000 590,ooo 3.220,OCQ
$/unit S/unit $/unit
Selling price $0.200 $0.200 SO.200
Cost of sales:
Manufacturing cost 0.120 0.100 0 . 1 0 5
Freight and delivery 0.007 0.008 0.007
Selling expense 0.018 0.020 0.016
Administrative expense 0.025 0.020 0.022
Research expense 0.010 0.008 0.008
Total cost of sales SO.180 $0.156 $0.158
Profits before taxes $0.020 SO.044 $0.042

FIGURE 5-7
Example of cost-of-sales account.