not 
 
Lumber Manufacturing 
 Accounts 
 
 BY 
 
 ARTHUR F. JONES 
 
 CERTIFIED PUBLIC ACCOUNTANT; ASSOCIATE OF 
 THE INSTITUTE OF CHARTERED ACCOUNTANTS 
 
 RONALD ACCOUNTING 
 SERIES 
 
 NEW YORK 
 
 THE RONALD PRESS COMPANY 
 1914 
 
COYPRIGHT, 1914, 
 
 BY 
 
 THE RONALD PRESS COMPANY 
 
j&initmtnt 
 
 Applicable to all books of the 
 Ronald Accounting Series 
 
 THE manuscripts of the books forming the 
 Ronald Accounting Series have been sub- 
 mitted to us and have been approved by us for 
 publication. 
 
 In some cases the authors express views that 
 are not fully in accord with those entertained by 
 us, but in no instance are such differences of 
 sufficient importance, in our judgment, to warrant 
 the withholding from publication of a meritorious 
 work. 
 
 J. E. STERRETT 
 
 ROBERT H. MONTGOMERY 
 
 O <T\ f^ t \ M r~* 
 

 PREFACE 
 
 The following treatise on lumber accounting applies 
 primarily to what may be termed commercial lumber; such 
 as is produced from the vast forest areas in the South, 
 Middle, West, and Northwest of the United States, and in 
 Western Canada. Any system devised for "hard" or 
 "precious" woods would be somewhat more elaborate; for, 
 in proportion as the commodity becomes more valuable, it 
 must be more carefully guarded. This applies, however, 
 more particularly to statistical records as distinguished from 
 accounting. 
 
 A system of accounting should be flexible enough for 
 either a large or a small business, although in the case of a 
 small manufacturer, some of the forms and methods sug- 
 gested will undoubtedly be superfluous or, if not actually 
 superfluous, inadvisable on the ground of economy. 
 
 The operations of the sash and door factory, bending 
 works, veneer works, and other subsidiary plants, except 
 as they affect the general operations of the sawmill, have 
 not been dealt with. These involve more or less elaborate 
 systems of cost accounting, and therefore merit separate 
 treatment. 
 
 Lumber accounting has been hampered by the fact 
 that there is no uniformity of opinion among lumber men 
 or accountants with regard to certain essential features of 
 the business. Reference here is more particularly made to 
 such questions as the treatment of interest and taxes on 
 temporarily unproductive forest areas, the price at which a 
 
vi PREFACE 
 
 lumber inventory should be valued, and the definition of 
 true lumber cost. The author feels that some of the 
 methods suggested in the body of the book are matters of 
 opinion, and may not be in accordance with the reader's 
 views; but the treatment of the subject necessitated the 
 adoption of a definite basis. A special chapter has, however, 
 been devoted to these debatable points in lumber account- 
 ing, in which an endeavor has been made to discuss the 
 various questions from all sides. The principle of "cost" 
 has been maintained throughout, irrespective of the author's 
 views on the subject, as being more in accordance with 
 custom and accounting practice than any other. 
 
 The use of technical terms has been avoided as far as 
 possible, and those which appear in the text are either 
 immediately explained or placed in the glossary. 
 
 The author desires to acknowledge with thanks the 
 assistance received from Mr. G. I. Hodges in the prepara- 
 tion of this work. 
 
 ARTHUR F. JONES. 
 Milwaukee, Wisconsin, 
 
 March 2nd, 1914. 
 
CONTENTS 
 
 PART I LUMBER MANUFACTURING AND ITS RECORDS 
 Chapter I. Fixed Assets; Timber Bonds 
 
 Standing Timber 
 Stumpage 
 
 Life of Plant Depreciation 
 Classification of Timber 
 Purchases of Timber 
 Purchases of Real Estate 
 Cutover Lands 
 Value of Uncut Lands 
 Timber Bonds 
 
 Chapter II. General Office 
 
 Books Required 
 
 General Ledger 
 
 Journal 
 
 Voucher Journal 
 
 Cash Book 
 
 Detailed Construction Ledger 
 
 Detailed Operating Ledger 
 
 Sales Journal 
 
 Freight Journal 
 
 Customers Ledger 
 
 Log Ledger 
 
 Timber Ledger 
 
 Chapter III. Classification of Construction and Operating Expenses 
 
 Construction Charges 
 Operating Charges 
 Logging Expenses 
 
 (1) Woods 
 
 (2) Transportation 
 
viii CONTENTS 
 
 Operating Charges (Continued) 
 Pond Expense 
 Sawmill 
 Yards 
 Dry Kilns 
 Power 
 Planing Mill 
 Lath Mill 
 Shingle Mill 
 Poles 
 
 General Operating Expenses 
 Distribution Expenses Shipping 
 Selling 
 General Expenses 
 
 Chapter IV. Logging and Sawmill Costs 
 
 Devising a Cost System 
 
 Form of Pay-Roll 
 
 Pay-Roll Check 
 
 Company Pay-Roil Tokens 
 
 Daily Report of Logs Cut in Woods 
 
 Log Summary 
 
 Mark Book 
 
 Daily Scale Logs Cut by Mill 
 
 Report of Mill Cut 
 
 Daily Record of Lumber Cut 
 
 Piling Ticket 
 
 Chapter V. Public Utilities and Outside Operations 
 
 Railroads 
 
 Power, Light, and Water 
 
 Land Department 
 
 Outside Operations 
 
 Boarding House and Hospital 
 
 Stable 
 
 Commissary and Warehouse 
 
 Chapter VI. Shipping Department 
 Orders 
 Tally Card 
 Delivery Card 
 Piece Tally Sheet 
 Daily Loading Record 
 Car and Loading Record 
 
CONTENTS ix 
 
 Chapter VII. Monthly and Annual Closing 
 
 Method of Closing 
 Inventories 
 
 Calculating Depreciation 
 Form of Statement 
 
 Chapter VIII. Debatable Points in Lumber Accounting 
 
 Divergent Views 
 
 (1) Disposition of Unearned Increment 
 
 (2) Value of Uncut Lands 
 
 (3) Interest and Taxes on Temporarily Unproductive Areas 
 
 (4) Pricing the Inventory 
 
 (a) Cost Price 
 
 (b) Selling Price Less Charges 
 
 (c) Fixed Price 
 
 (5) Cost and True Cost 
 
 Chapter IX. Technical Terms Used in the Lumber Business 
 
x CONTENTS 
 
 PART IJ RECORDS USED IN LUMBER MANUFACTURING 
 
 Chapter X. Forms 
 Form 
 
 la. Voucher Journal (left) 
 
 Ib. " " (right) 
 
 2a. Cash Book (left) 
 
 2b. " " (right) 
 
 3. Detailed Construction Ledger 
 
 4. Detailed Operating Ledger 
 5a. Sales Journal (left) 
 
 5b. " " (right) 
 
 6. Freight Journal 
 
 7. Customers Ledger 
 
 8. Log Ledger 
 
 9. Timber Ledger 
 lOa. Pay-Roll (left) 
 lOb. " (right) 
 
 11. Daily Report of Logs Cut in Woods 
 
 12. Log Summary 
 
 13. Daily Scale Logs Cut by Mill 
 
 14. Report of Mill Cut 
 
 15. Daily Record of Lumber Cut 
 
 16. Piling Ticket 
 
 17. Land Ledger 
 
 18. Order Form 
 
 19. Tally Card 
 
 20. Dry Shed Tally Card 
 
 21. Delivery Card 
 
 22. Piece Tally Sheet 
 
 23. Daily Loading Record 
 
 24. Car and Loading Record 
 
 25 Monthly Statement 
 
 26 Detailed Operating Report 
 
TMg 
 
 UNIVERSITY 
 
 LUMBER MANUFACTURING 
 ACCOUNTS 
 
 Part I Lumber Manufacturing and 
 Its Records 
 
 CHAPTER I 
 
 FIXED ASSETS; TIMBER BONDS 
 
 Standing Timber 
 
 The standing timber, or timber rights, are the principal 
 assets of a lumber manufacturing concern. They form the 
 security for its bond issue (if any), and upon the length 
 of the cut depends the life of the plant ; for, as soon as the 
 timber resources are exhausted, the plant and machinery 
 are, in the majority of cases, worth only salvage value. The 
 estimated quantity of the timber and its value per thousand 
 feet form the basis for one of the principal charges to 
 operations; and from these figures, the depreciation on the 
 mill as a whole is calculated. 
 
 To take a specific instance, let it be assumed that the 
 price paid for certain timber or timber rights is $2,135,000, 
 
 ii 
 
12 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
 and that the cruise on which the price is based shows the 
 following results : 
 
 Description Quantity 
 
 White Pine 400,000,000 
 
 Western Pine 160,000,000 
 
 Spruce and Cedar. . 110,000,000 
 Fir, Tamarack, etc.. 160,000,000 
 Cedar Poles (70,000) 
 
 Value per 
 1,000 ft. 
 
 $3-50 
 2.50 
 
 2.OO 
 50 
 
 .50 each 
 
 Amount 
 
 $I,4OO,OOO 
 
 4OO,OOO 
 
 220,000 
 
 80,000 
 
 Total 830,000,000 
 
 $2,135,000 
 
 The prices paid for particular tracts naturally vary; 
 but it is usually impracticable, from 1 a bookkeeping stand- 
 point, to segregate the products of different areas, and the 
 standing timber must therefore be considered as a whole. 
 
 The cedar poles, being based on number and not on 
 measurement, must be first eliminated and set up in a 
 separate account, the credits to that account being the value 
 of poles cut at the basic price of fifty cents each. A similar 
 amount is charged to operations under the heading of Poles 
 (Manufacturing) account when the poles are cut. 
 
 Stumpage 
 
 This leaves the asset of "Standing Timber'* at 
 $2,100,000, represented by 830,000,000 board feet at log 
 scale, or an average price of $2.53 per thousand feet. 
 Theoretically, this average price forms the basis of the log- 
 ging cost in respect of stumpage, but in practice it is usual 
 to add to this figure an estimated amount per thousand feet 
 as a matter of conservatism, and in this particular instance 
 the officials have decided that $3 per thousand shall be the 
 basis for the charge to logging cost under "Stumpage." 
 
FIXED ASSETS; TIMBER BONDS 13 
 
 As a rule, it is quite unnecessary to include this additional 
 amount, for the actual yield usually overruns the cruise; it 
 is, however, a custom which will be generally approved by 
 accountants as being safe and conservative. 
 
 Life of Plant Depreciation 
 
 Assuming that the capacity of the mill is 40,000,000 
 feet per annum, it is obvious that, at a rate of $3 per 1,000 
 feet, the whole of the book value of the timber will be 
 eliminated in about 17% years, whereas the timber resources 
 provide for continuous capacity operations for a period of 
 approximately 20% years. This figure constitutes the life 
 of the plant, and is arrived at by dividing the annual output 
 into the total available board feet. 
 
 The period of 20 fy years forms the basis for deprecia- 
 tion, if the sa\vmill runs at capacity output for the entire 
 period, as the whole of the value of the plant and equipment 
 must be written off during that time, its salvage value being 
 ignored. For the purpose of equalizing depreciation charges, 
 however, the annual charge is usually based on the monthly 
 or annual mill cut, instead of on the life of the plant, as it 
 would be manifestly unfair to charge the same amount to 
 operation when the mill is running at capacity as when it 
 is not. In this particular instance, assuming the mill and 
 equipment cost $830,000, the charge to operations in respect 
 of depreciation would be $i per thousand feet at log scale. 
 Special depreciation is necessary in regard to certain items, 
 but these are not sufficiently important to call for discussion 
 here. 
 
 In considering the question of depreciation, it must be 
 borne in mind that the charge need not, of necessity, be 
 based on the timber actually owned, but on the available 
 supply. That is to say, if there is additional timber which 
 can be purchased, this factor can be taken into consideration 
 
14 LUMBER MANUFACTURING ACCOUNTS 
 
 in arriving at the annual charge. If the depreciation charge, 
 however, is based on the available supply, the facts of the 
 case must warrant this method of treatment. The supply 
 should be available for the use of that particular mill only, 
 and there must be a very reasonable assumption that these 
 timber resources will eventually be purchased. As a general 
 rule, this method of computing depreciation charges is un- 
 desirable, but instances arise in practice .where the factor of 
 the available supply may be legitimately taken into considera- 
 tion. For the sake of simplicity, it is assumed, in the 
 example dealt with, that the whole of the available supply 
 is owned. 
 
 Classification of Timber 
 
 It is often desirable to segregate the various classes of 
 timber. When this is done the general accounting procedure 
 is the same, but, instead of carrying one asset entitled 
 "Lands and Timber," having a book value of $2,100,000, 
 separate accounts will be carried as follows : 
 
 White Pine. . $1,400,000 
 
 Western Pine 400,000 
 
 Spruce and Cedar 220,000 
 
 Fir, Tamarack, etc. ... 80,000 
 
 Total $2, 100,000 
 
 The basic prices for the stumpage cost will be White 
 Pine, $3.50; Western Pine, $2.50; Spruce and Cedar, $2; 
 Fir, Tamarack, etc., 50 cents with the addition of such 
 amount per thousand feet as the management may consider 
 to be necessary or desirable. In operation, the only differ- 
 ence under a classification of timber is that the various logs 
 must be scaled into the sawmill in classes instead of as a 
 whole, and that the product must be similarly segregated. 
 
FIXED ASSETS; TIMBER BONDS ^ 
 
 Purchases of Timber 
 
 Subsequent purchases of timber and the addition of 
 interest, taxes, and similar items, affect the logging cost and 
 the life of the plant; but the basic principles are the same 
 as when the original cost alone is dealt with, and the results 
 are arrived at in the same manner. If additional purchases 
 are made at enhanced figures, the cost of the stumpage per 
 thousand feet naturally increases in proportion, and care 
 must be taken to ascertain that the price at which the 
 stumpage is included in the logging cost is never less per 
 thousand feet than the result obtained by dividing the 
 footage remaining uncut, into the book value. 
 
 Purchases made for immediate logging should be 
 charged to Logging account at the price per thousand feet 
 actually paid, and not at the average price of the total hold- 
 ings. The reason for this course is obvious, as a white pine 
 area might be purchased at $5 per thousand feet and im- 
 mediately logged, whereas the average price of the total 
 holdings had been agreed upon as $3 per thousand. Under 
 such circumstances, if the $3 rate were adhered to, there 
 would be an undercharge to logging cost of $2 per thousand 
 feet. Where, however, no segregation is made into classes 
 of timber, and where subsequent purchases are not im- 
 mediately logged off, the "average" rule must necessarily 
 be applied. 
 
 Purchases of Real Estate 
 
 In addition to the timber lands, purchases of real estate 
 are occasionally made for mill and town sites. The method 
 of entering these upon the books differs in no way from 
 ordinary commercial practice. A special department usually 
 handles the townsite proposition. The operation of this de- 
 partment and the effect of its transactions on the general 
 books of the company are dealt with in Chapter V. 
 
16 LUMBER MANUFACTURING ACCOUNTS 
 
 Cutover Lands 
 
 The land underlying the timber is not usually considered 
 as being of any actual value from an operating standpoint, 
 and the purchase price is based on the value of the standing 
 timber alone, the land values being ignored. Should any 
 value, however, be placed upon the uncut lands at the time 
 of purchase, the value of the timber itself must be reduced, 
 and the charge to logging operations be consequently less. 
 A special account, "Uncut Lands," will be opened, and 
 transfers made from this account to "Cutover Lands" at the 
 original acre price as the areas are logged off. The Uncut 
 Lands account will thus be automatically wiped out when 
 logging operations come to an end; and the profit or loss 
 from the sales of real estate will be shown in the Cutover 
 Lands account, such profit being transferred to Surplus 
 account from time to time. 
 
 Usually the entire profit on each sale of cutover lands is 
 transferred to Surplus account, but a risk is involved in this 
 course which must not be lost sight of. Take, for instance, 
 a case where the uncut lands have been valued at $20 per 
 acre a figure which presumably is under the average price 
 at which the lands will be sold. The best lands will naturally 
 be sold first, and may realize $100 per acre, or a profit of 
 $80 which is transferred to Surplus. This process is con- 
 tinued with diminishing prices until eventually the remaining 
 lands are practically unsalable, being perhaps situated on the 
 tops of mountains or very remote from transportation. This 
 real estate has no realizable value, but it still stands on the 
 books at $20 per acre a manifest overvaluation. No definite 
 rule, however, can be laid down as to the amount which 
 may properly constitute divisible profit in such cases, as the 
 method of treatment will vary in accordance with the partic- 
 ular circumstances. Transactions in the sale of cutover 
 lands are handled in the land department. 
 
FIXED ASSETS; TIMBER BONDS 17 
 
 Value of Uncut Lands 
 
 Although the value of uncut lands is generally ignored 
 in arriving at the purchase price and for the purpose of a 
 bond issue, the actual value of such lands is often consider- 
 able. This value depends on location, climate, proximity to 
 transportation facilities, etc. Usually the question of the 
 value of lands not cut over comes up sooner or later, 
 especially when the lumber market is unfavorable and profits 
 small or non-existent, and when the land is actually selling 
 at good prices for agricultural purposes. Under such cir- 
 cumstances, the uncut land is a convenient method of build- 
 ing up a surplus, but it cannot be maintained that such a 
 surplus is available for distribution. 
 
 Timber Bonds 
 
 Most timber propositions are bonded ; and timber bonds 
 are becoming more and more popular with the investing 
 public. They will undoubtedly be still more eagerly taken 
 up when the popular misconception regarding fire risk is 
 removed. Timber nowadays is carefully guarded; and the 
 fire risk, except in certain localities, is not so great as the 
 danger arising from natural causes, such as storms, insects, 
 fungi, etc. 
 
 Timber bonds are usually serial in character, as in this 
 form they are attractive to banks and insurance companies, 
 and to others who desire to invest funds for specific periods, 
 as they can purchase such serials as will mature at the re- 
 quired dates. The retirement of the bonds at the specified 
 dates is provided for by means of a sinking fund based on 
 the conditions of the mortgage. 
 
 Two methods are in common use, the first providing 
 that, before cutting timber from a specified tract, the 
 operator shall pay to the sinking fund the actual value of the 
 timber thereon contained as recited in the schedule termed 
 
18 LUMBER MANUFACTURING ACCOUNTS 
 
 the "releasing list" attached to the mortgage. The second 
 is based on so much per thousand feet on the logs cut (log 
 scale) or on the board measure produced (lumber scale). 
 Both methods call for a minimum amount to be deposited 
 sufficient to retire the maturing bonds, and one method is 
 probably as good as the other. The second, however, is 
 preferable, inasmuch as it is not so likely as the first to 
 hamper the operator financially. In the first case the operator 
 must provide the money before cutting and, in the second, 
 after he has done so, the payments under the second method 
 being made in the month or quarter following the cutting. 
 The amount payable is based on the capacity of the plant, 
 the life of the loan, and the amount of the maturities. 
 
 Surplus payments to the sinking fund can be used for 
 purchasing future serials in the open market or otherwise, 
 or the deed may provide that bonds from other serials may 
 be purchased at a fixed premium at the option of the trustees. 
 In the early days of timber bond issues, the basis for sink- 
 ing fund provision was often fixed at too high a figure, and 
 the operator was hampered financially in consequence. This 
 possibility should be seriously considered in connection, with 
 an issue of bonds. Sinking fund provisions should not be 
 based on inflated or exceptional prices, but preferably on 
 prices lower than the average. It will be found in practice 
 that anticipated profits outlined in a prospectus are often 
 unrealized, not only because the average price is over- 
 estimated, but also because the cost of manufacture is far 
 too often underestimated. As sinking funds are considered 
 primarily in connection with profits, this point becomes very 
 material in calculating the amount of sinking fund contribu- 
 tions. 
 
CHAPTER II 
 
 GENERAL OFFICE 
 
 Books Required 
 
 All the material information of a lumber business, both 
 accounting and statistical, eventually finds its way into the 
 general office and is incorporated in its records. Its source 
 and the method of preparing the subsidiary records, can 
 more conveniently be considered under the headings of 
 operating divisions, such as "Logging," "Sawmill," "Ship- 
 ping," etc. The books necessary for recording the financial 
 transactions are: 
 
 General Ledger 
 
 Journal 
 
 Voucher Journal 
 
 Cash Book 
 
 Detailed Construction Ledger 
 
 Detailed Operating Ledger 
 
 Sales Journal 
 
 Freight Journal 
 
 Customers Ledgers 
 
 Log Ledger 
 
 Timber Ledger 
 
 General Ledger 
 
 No special form is required for this, but a column for 
 feet and pieces is practically a necessity. Such accounts 
 should be opened as are necessary to record correctly the 
 
 19 
 
20 LUMBER MANUFACTURING ACCOUNTS 
 
 transactions regarding the particular company. Care should 
 be taken to open controlling accounts sufficient to provide for 
 simplicity of check. If an adequate number of accounts are 
 opened, the control is more effective, and errors between 
 the controlling and detailed accounts are necessarily less 
 difficult to locate. 
 
 Journal 
 
 A book with the usual journal rulings is sufficient in 
 most cases, but one in columnar form may in some instances 
 be desirable. It is usually unnecessary, however, as transfer 
 and other journal vouchers can be put through the voucher 
 journal if desired. 
 
 Voucher Journal 
 
 A special form of voucher journal is necessary. Form i 
 will be found suitable for most lumber manufacturing con- 
 cerns. The headings of the various columns will naturally 
 vary with the number of controlling accounts required. 
 
 This form can be used for both cash and journal vouch- 
 ers. The vouchers themselves should, preferably, be of the 
 "check" voucher pattern, and contain sufficient space for 
 adequate distribution. They should, of course, be numbered 
 consecutively; and it will be found convenient to give each 
 month a number corresponding to its sequence in the 
 calendar; thus, the first voucher in January will be 1001 ; 
 the first in February, 2001 ; and the first in December, 12001. 
 If this system be adopted, the location of any particular 
 voucher may be instantly ascertained. The journal vouchers 
 should preferably be of a different color from the cash 
 vouchers and should be separately filed. 
 
 One point involved in check vouchers is probably not 
 very widely known, but may become of considerable impor- 
 tance. Most vouchers contain on the back of the check the 
 
GENERAL OFFICE 21 
 
 following words, or some phrase of similar import: ''The 
 indorsement of this check by payee is an acceptance of it in 
 full settlement of the account as stated in voucher bearing 
 corresponding number," and on the face of the voucher, 
 "Detach this statement before presenting check." A case has 
 arisen though not actually relating to vouchers in which 
 the defendant claimed that he did not receive the documents 
 called for in a similar notice, and the plaintiff was unable to 
 prove the facts. Under these circumstances, it is better to 
 insert on the check itself the words, "Detach the above 
 voucher before presenting this check," as this is notice that 
 a statement should have been received and also prima facie 
 evidence that such statement was actually received. 
 
 A voucher record has certain objections which are well 
 known to accountants. Perhaps the most important is the 
 possibility of a duplicate payment. If it is desired to install 
 instead a regular purchase journal and ledger, the former 
 book will conform very closely to the voucher journal form, 
 with the elimination of such columns as do not relate to 
 purchases. 
 
 Cash Book 
 
 A special form of cash book is usually necessary, but 
 the particular form will naturally vary in accordance with 
 the requirements of the business and the number of controll- 
 ing accounts required. Form 2 incorporates the usual 
 rulings. 
 
 A bound book should be used for recording the cash 
 transactions. All moneys received should be deposited daily, 
 and all payments should' be made by check, including those 
 for petty cash requirements. The petty cash fund should 
 be started with a sufficient sum to carry, say, a week's ex- 
 penditures, the total of which should be reimbursed by 
 check, thus restoring the fund to its original amount. 
 
22 LUMBER MANUFACTURING ACCOUNTS 
 
 Detailed Construction Ledger 
 
 Form 3 will be found convenient for recording details 
 of the construction accounts, a list of which is given in 
 Chapter III. 
 
 Detailed Operating Ledger 
 
 Details of the operations are entered up from the vouch- 
 ers and from other sources. Form 4 will be found suitable 
 for the purpose. A list of the usual operating accounts is 
 given in Chapter III. 
 
 Sales Journal 
 
 The form of sales journal will naturally vary with the 
 requirements of each individual mill, but Form 5 can be 
 adapted to circumstances. 
 
 The book may be of loose-leaf form, the left-hand side 
 containing the sale and freight details, and the right-hand 
 side the distribution of the sale. If it is desired to segregate 
 the product still further into classes of lumber, it is merely 
 a question of inserting additional columns. 
 
 The totals of Accounts Receivable and Cash Sales will 
 be posted to the debit of the respective accounts, the general 
 ledger items being, of course, posted individually. 
 
 The totals of the Estimated Freight column will be posted 
 to the credit of the Estimated Freight account, and the 
 individual items to the credit column of the estimated freight 
 division of the Customers Ledger account. The amount of 
 estimated freight is entered in the Estimated Freight column 
 in the Customers Ledger account for the purpose of showing 
 the actual value of the customer's accounts exclusive of 
 freight. When the actual freight bill comes to hand, the 
 corresponding estimated items of the Customers Ledger ac- 
 count are checked off; the total of the unchecked items will 
 then agree with the balance shown on the Estimated Freight 
 
GENERAL OFFICE 23 
 
 account. All freight items are adjusted through the freight 
 journal, for which a form is given later. 
 
 The totals of the various distribution columns, viz., 
 Estimated Freight, Lumber, etc., will be posted to the credit 
 of their respective accounts in the general ledger ; and items 
 appearing in the "Merchandise and Sundries" column will 
 be specified in detail and posted individually or from a 
 monthly dissection of the items appearing therein. 
 
 For convenience in arriving at the amount of commission 
 payable to salesmen, a column has been inserted giving the 
 necessary particulars. 
 
 Freight Journal 
 
 Lumber is usually sold f. o. b. at destination; and each 
 item, accordingly, contains a proportion of freight, which 
 must be estimated at the time of shipment, and adjusted 
 when the actual freight bill comes to hand. The freight 
 journal shown in Form 6 will be found convenient. 
 
 The amount of the actual freight is entered in the freight 
 journal and posted to the credit of the individual accounts. 
 Opposite this amount is entered the original amount of the 
 estimated freight as it appears in the sales journal. This 
 estimated amount is posted to the debit of the Estimated 
 Freight column in the customer's account, and the monthly 
 total is debited to Estimated Freight account. The debit 
 or credit adjustment plus the total of the Estimated Freight 
 column will, of course, equal the total credited to customers. 
 These adjustments could be segregated, but, as so many 
 mixed cars are sold and as the amount involved is usually 
 small, it is a common practice to either credit or debit the 
 difference to Lumber Sales. As already stated, each item 
 of estimated freight is adjusted when the actual freight bill 
 comes to hand. When this information is received, the com- 
 pany is in a position to make a claim against the railroad 
 
24 LUMBER MANUFACTURING ACCOUNTS 
 
 company for differences. The form submitted is designed 
 to show the ultimate disposition of every item of estimated 
 freight. 
 
 Customers Ledger 
 
 A convenient ruling for a customers ledger is shown in 
 Form 7. 
 
 The columns on the extreme right are for recording 
 estimated freight. At the time the sale is entered, the esti- 
 mated freight is inserted in the credit column from the sales 
 journal, which is relieved by an entry of the same amount 
 to the debit column from the freight journal, at the time the 
 actual freight is posted. The reason for the insertion of 
 these columns is to enable the trial balance to be taken in 
 two columns, and also that the actual value of Accounts 
 Receivable may be readily ascertained. The total of the 
 balances of the Estimated Freight columns will agree with 
 the balance of the Estimated Freight account. 
 
 Log Ledger 
 
 If it is necessary to record transactions in logs pur- 
 chased, Form 8 can be used. 
 
 Details of the purchase are entered therein, together with 
 all credits for cash or supplies. The statistical details are 
 inserted from the scale reports. 
 
 Timber Ledger 
 
 The timber ledger is purely for statistical purposes, in 
 order to show the extent and location of the logging opera- 
 tions. The timber ledger shown in Form 9 will be found to 
 answer the purpose. 
 
 The form presented contains in the left-hand corner a 
 plat of each section, which is divided up into tracts of forty 
 
.GENERAL OFFICE 25 
 
 acres each. These tracts can be shaded to represent the 
 various classes of timber standing thereon, or details of the 
 actual cruise can be entered if desired. 
 
 The estimate for each forty acres is entered under the 
 various locations according to the classes of timber. Only 
 three columns for the estimate and cut are provided in the 
 form of timber ledger shown, but these can be increased as 
 desired. The details of the actual cut are entered from the 
 scale reports received from the woods. 
 
CHAPTER III 
 
 CLASSIFICATION OF CONSTRUCTION AND 
 OPERATING EXPENSES 
 
 Construction Charges 
 
 The method of treating construction charges for a saw- 
 mill does not differ from ordinary commercial practice, 
 except possibly that the segregation is carried a little fuller 
 than is usually the case, it being desirable, from the stand- 
 point of insurance and for other reasons, to know the exact 
 cost of each unit. 
 
 Only the account of "Construction and Equipment" 
 need be carried in the general ledger, the particulars making 
 up the total of this account being shown in a detailed con- 
 struction ledger in which the accounts may be segregated 
 in any way desired. The following list contains a suggested 
 distribution of the construction charges: 
 
 Clearing Mill Site 
 Sawmill and Equipment 
 Planing Mill and Equipment 
 Lath Mill and Equipment 
 Dry Kilns 
 Power House 
 Shavings Vault 
 Sorting Shed 
 Dry Sheds 
 
 26 
 
CONSTRUCTION AND OPERATING EXPENSES 2 ; 
 
 Burner and Conveyor 
 
 Water System Plant 
 
 Waterworks 
 
 Electric Light Plant 
 
 Electric Lighting Distribution System 
 
 Fire Protection System 
 
 Yard 
 
 Yard Equipment 
 
 Warehouse 
 
 Oil House 
 
 Lime House 
 
 Machine and Blacksmiths' Shops 
 
 Mill Pond 
 
 Dam 
 
 Boom 
 
 Launches and Boats 
 
 Log Slip 
 
 Logging Railroad 
 
 Locomotives 
 
 Logging Equipment and Slides 
 
 Barn 
 
 Office 
 
 Club 
 
 Official Residences 
 
 Boarding House 
 
 Boarding House Equipment 
 
 Cottages 
 
 Commissary 
 
 Camp Construction 
 
 Camp Equipment 
 
 Office Furniture and Equipment 
 
 Tools and Appliances 
 
 Horses, Mules, Oxen, Wagons 
 
 Miscellaneous 
 
2 g LUMBER MANUFACTURING ACCOUNTS 
 
 If other operations, such as a sash and door factory, 
 bending works, or similar activities are carried on, separate 
 construction accounts will be opened for these. 
 
 The accounts in the construction ledger will, of course, 
 contain details showing the individual amounts expended 
 in respect of machinery, labor, lumber, and materials gen- 
 erally, compiled from the vouchers, pay-rolls, and transfer 
 vouchers. 
 
 Operating Charges 
 
 A complete enumeration of operating accounts to coin- 
 cide with the requirements of every business is practically 
 impossible; the following list, however, will give a general 
 indication of the lines to be followed : 
 
 LOGGING EXPENSES ( i ) WOODS Account 
 
 Number 
 
 Superintendence i 
 
 (a) Salaries 
 
 (b) Expenses 
 
 Foremen and Clerks ,. .. 2 
 
 (a) Salaries 
 
 (b) Expenses 
 
 Sealers 3 
 
 (a) Salaries 
 
 (b) Expenses 
 
 Sawing 4 
 
 (a) Contract Labor 
 
 (b) Company Labor 
 
 Supplies 5 
 
 Maintenance of Camp Buildings 6 
 
 (a) Labor 
 
 (b) Material 
 
CONSTRUCTION AND OPERATING EXPENSES 29 
 
 Account 
 Number 
 
 Maintenance of Spur Tracks . . .... . . ... ... ... 7 
 
 (a) Labor 
 
 (b) Material 
 
 Maintenance of Equipment . . . . 8 
 
 (a) Labor 
 
 (b) Material 
 
 Road Building , 9 
 
 Fire Patrol and Protection 10 
 
 General Expense 1 1 
 
 Depreciation 12 
 
 LOGGING EXPENSES (2) TRANSPORTATION Account 
 
 Number 
 
 Railroad 13 
 
 Rafting 14 
 
 Teams 15 
 
 (a) Teamsters 
 
 (b) Feed and Stable Help 
 
 (c) Repairs and Blacksmithing 
 
 Charge to these accounts all costs of logging, from prep- 
 aration of woods and roads, flumes, etc., for operation, to 
 delivery of logs to pond. For inventory purposes, distinc- 
 tion should be observed between "Woods" cost and "Trans- 
 portation" cost. 
 
 POND EXPENSE Account 
 
 Number 
 
 Labor 30 
 
 Supplies 31 
 
 Maintenance of Dams 32 
 
 (a) Labor 
 
 (b) Material 
 
LUMBER MANUFACTURING ACCOUNTS 
 
 Account 
 Number 
 
 Maintenance of Equipment 33 
 
 (a) Labor 
 
 (b) Material 
 
 General Expenses 34 
 
 Depreciation 35 
 
 Charge to these accounts all costs in connection with 
 handling logs in the pond and delivering same to mill, and 
 for maintenance of storage facilities, booms, dams, and 
 pond equipment. 
 
 SAWMILL 
 
 Account 
 Number 
 
 Power 50 
 
 Foremen and Assistants 51 
 
 General Labor 52 
 
 Supplies 53 
 
 Maintenance of Buildings 54 
 
 (a) Labor 
 
 (b) Material 
 
 Maintenance of Machinery and Equipment. . 55 
 
 (a) Labor 
 
 (b) Material 
 
 Insurance , 56 
 
 General Expenses 57 
 
 Depreciation ,. ., 58 
 
 Charge to these accounts all costs from scaling the logs 
 at the head of the mill to the delivery of the finished product 
 to the sorting sheds. 
 
CONSTRUCTION AND OPERATING EXPENSES 31 
 
 YARDS Number 
 
 Account 
 
 Foremen and Assistants 80 
 
 Labor Sorting from Chain 81 
 
 Transportation to Piles 82 
 
 Piling 83 
 
 Shed Grading 84 
 
 General 85 
 
 Teaming 86 
 
 Maintenance of Yards and Sheds 87 
 
 (a) Labor 
 
 (b) Material 
 
 Maintenance of Equipment 88 
 
 (a) Labor 
 
 (b) Material 
 
 Supplies 89 
 
 Fire Protection 90 
 
 Insurance 91 
 
 General Expenses 92 
 
 Depreciation 93 
 
 Charge to these accounts all yard costs from receipt of 
 lumber at the sorting chain to delivery to piles, kilns, dry 
 sheds, or planing mill. 
 
 DRY KILNS Account 
 
 Number 
 
 Power no 
 
 Labor in 
 
 Maintenance of Buildings 112 
 
 (a) Labor 
 
 (b) Material 
 
 Maintenance of Equipment 1 13 
 
 (a) Labor 
 
 (b) Material 
 
32 LUMBER MANUFACTURING ACCOUNTS 
 
 Account 
 Number 
 
 Supplies ,. ., 114 
 
 Insurance 115 
 
 General Expenses 1 16 
 
 Depreciation 117 
 
 Charge to these accounts all costs of operating dry kilns. 
 
 POWER Account 
 
 Number 
 
 Engineers and Firemen 130 
 
 Oil and Waste 131 
 
 Supplies 132 
 
 Maintenance of Buildings 133 
 
 (a) Labor 
 
 (b) Material 
 
 Maintenance of Machinery and Equipment. . 134 
 
 (a) Labor 
 
 (b) Material 
 
 Insurance 135 
 
 General Expenses 136 
 
 Depreciation 137 
 
 Charge to these accounts all cost of power, including 
 handling of fuel used. The cost of power should be dis- 
 tributed over the various operating divisions on a metered 
 or equitable basis where possible. 
 
 PLANING MILL Account 
 
 Number 
 
 Power 150 
 
 Foreman IS 1 
 
 General Labor 152 
 
 Supplies 153 
 
CONSTRUCTION AND OPERATING EXPENSES 33 
 
 Account 
 Number 
 
 Maintenance of Buildings. .,. .,. .,. . . ... ..... 154 
 
 (a) Labor 
 
 (b) Material 
 
 Maintenance of Machinery and Equipment. . 155 
 
 (a) Labor 
 
 (b) Material 
 
 Insurance , , 156 
 
 General Expenses 157 
 
 Depreciation 158 
 
 Charge to these accounts all costs of dressing lumber, 
 from the time it is received at the planing mill until it is de- 
 livered for transfer to the dry sheds or shipping platforms 
 
 LATH MILL Account 
 
 Number 
 
 Power 170 
 
 Contract Labor 171 
 
 Company Labor 1 72 
 
 Supplies 173 
 
 Maintenance of Buildings 174 
 
 (a) Labor 
 
 (b) Material 
 
 Maintenance of Equipment .,. ... . . 175 
 
 (a) Labor 
 
 (b) Material 
 
 Insurance , 176 
 
 General Expenses 177 
 
 Depreciation 178 
 
 Charge to these accounts all costs in connection with the 
 manufacture of lath. It is impracticable and misleading to 
 attempt to charge operations of the lath mill with any 
 
34 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
 amount purporting to represent the value of the product 
 received from the sawmill, as waste material is largely used. 
 Laths may be considered as a by-product pure and simple. 
 
 Account 
 
 SHINGLE MILL Number 
 
 Logs 190 
 
 Contract Labor 191 
 
 Company Labor 192 
 
 Supplies 193 
 
 Maintenance of Buildings 194 
 
 (a) Labor 
 
 (b) Material 
 
 Maintenance of Equipment 195 
 
 (a) Labor 
 
 (b) Material 
 
 Insurance 196 
 
 General Expenses 197 
 
 Depreciation 198 
 
 Charge to these accounts all expenses in connection with 
 the manufacture of shingles. In a number of cases it is 
 impracticable to charge the logs or bolts used to the shingle 
 mill ; and the shingles may be more conveniently considered 
 as a by-product. 
 
 Account 
 POLES Number 
 
 Sawing Contract Labor 210 
 
 Sawing Company Labor 211 
 
 Hauling 212 
 
 Scaling 213 
 
 Delivery to Cars 214 
 
 General Expenses 215 
 
 Charge to these accounts all costs in connection with 
 Cutting and delivering poles. The pole business is usually 
 
CONSTRUCTION AND OPERATING EXPENSES 
 
 35 
 
 a separate undertaking ; and poles are generally sold as they 
 stand in the woods, all expense being borne by the purchaser. 
 
 GENERAL OPERATING EXPENSES Account 
 
 Number 
 
 Paymaster 230 
 
 Timekeepers 231 
 
 Watchmen 232 
 
 Maintenance of Fire Apparatus 233 
 
 (a) Labor 
 
 (b) Material 
 
 Stable Expenses 234 
 
 (a) Barn Boss and Helpers 
 
 (b) Feed 
 
 (c) Repairs 
 
 (d) Miscellaneous 
 
 Taxes 235 
 
 Insurance Lumber and Miscellaneous 236 
 
 Injuries and Damages 237 
 
 Miscellaneous 238 
 
 Charge to these accounts all costs which are not immedi- 
 ately distributable to the various operating departments. 
 
 DISTRIBUTION EXPENSES SHIPPING Account 
 
 Number 
 
 Salaries Shipping Clerk and Assistants. . . . 250 
 
 Labor Trucking to Platform 251 
 
 Labor Loading to Cars 252 
 
 Supplies 253 
 
 Car Stakes 254 
 
 (a) Labor 
 
 (b) Material 
 
 Demurrage 255 
 
 Miscellaneous 256 
 
36 LUMBER MANUFACTURING ACCOUNTS 
 
 Charge to these accounts costs of delivering stock sold 
 from piles, dry sheds, and planing mill to cars preparatory 
 to shipment. 
 
 Account 
 
 SELLING Number 
 
 Salesmen 260 
 
 (a) Salaries 
 
 (b) Expenses 
 
 Advertising 261 
 
 Commissions 262 
 
 Collections 263 
 
 Miscellaneous 264 
 
 Charge to these accounts all costs in connection with the 
 marketing of the product. 
 
 Account 
 
 GENERAL EXPENSES Number 
 
 Salaries of Officers 280 
 
 Expenses of Officers 281 
 
 Salaries of Clerks 282 
 
 Expenses of Clerks 283 
 
 Stationery and Printing 284 
 
 Office Supplies 285 
 
 Telephone 286 
 
 Postage and Telegrams 287 
 
 Taxes and Licenses 288 
 
 Insurance 289 
 
 Legal Expenses 290 
 
 Depreciation of General Office Building and 
 
 Equipment 291 
 
 Miscellaneous 292 
 
 Charge to these accounts all expenses pertaining to the 
 general administration of the affairs of the company. 
 
CHAPTER IV 
 LOGGING AND SAWMILL COSTS 
 
 Devising a Cost System 
 
 The accountant called upon to devise forms for logging 
 and sawmill costs and statistics, must bear in mind that the 
 requirements for different mills vary, and also that every 
 lumberman has his own generally very definite ideas on 
 the subject. The accountant must carefully study the needs 
 of each individual mill, and adapt himself to conditions. To 
 devise a single system which will adequately take care of 
 the costs in every mill is an impossibility; and the forms 
 shown in Part II (n 16) are merely of a general char- 
 acter, indicating the lines to be followed. The accountant 
 is usually left a comparatively free hand with regard to the 
 form of the general books; but with regard to the special 
 forms for operating divisions he must be largely guided by 
 the requirements of the management, the needs of the par- 
 ticular mill, and the methods of operation. Forms to take 
 care of any particular phase of the operations are usually not 
 difficult to devise. The main thing to avoid is that over- 
 elaboration which is, unfortunately, rather characteristic 
 of some accountants. 
 
 If certain information is desired by the management, 
 ascertain first of all whether this information is material. 
 If, after discussion, it is found to be of importance, devise 
 the simplest form which will serve the purpose. Remember 
 that each form added means additional expense; and do 
 not devise forms which require the services of an expert 
 
 37 
 
38 LUMBER MANUFACTURING ACCOUNTS 
 
 bookkeeper to fill up, if they are intended for the use of a 
 foreman or laborer. 
 
 Form of Pay-Roil 
 
 Pay-rolls containing dissection columns are usually un- 
 necessary and are somewhat cumbersome to handle. Pro- 
 vided the occupation of each employee and the account num- 
 ber to which his time is to be charged are definitely stated, 
 Form 10 will generally be sufficient for both logging and 
 sawmill operations. 
 
 A dissection of the pay-roll will be made up at the end 
 of each pay-roll period, and the summary entered from the 
 pay-roll voucher to the detailed operating x)r construction 
 ledger, as the case may be. 
 
 Pay-Roil Check 
 
 A form of pay-roll check should contain merely the 
 employee's number, the number of hours worked, the rate, 
 and the amount. The indorsement should be so worded as 
 to constitute a full settlement when signed. More elaborate 
 forms containing actual details of the occupation of the 
 employee and the hours worked each day are sometimes 
 used; but their preparation throws a burden on the pay- 
 master's staff which outweighs their advantages. 
 
 Company Pay-Roll Tokens 
 
 Some states still permit the payment of employees in 
 kind rather than in money. Generally, a metal or celluloid 
 token is used as the equivalent of various coins. These are 
 redeemable, as a rule, only at the company's stores, or other 
 stores specified, and in merchandise only, so far as employees 
 are concerned. When a pay-roll is provided for in this 
 manner, "Company's Pay-Roll Tokens" account is credited 
 with the currency value of the tokens issued, the various 
 
LOGGING AND SAWMILL COSTS 
 
 39 
 
 operating or other accounts being charged. The amount of 
 tokens issued is a direct liability which must be liquidated by 
 money or money's worth. The employees exchange the 
 tokens for goods, and from time to time they are turned 
 in to the general office by the commissary manager or store- 
 keeper and are redeemed in cash or by means of a credit. 
 In either case, the value of the tokens exchanged is charged 
 to "Company's Pay-Roll Tokens" account the balance on 
 this account representing the liability in respect of tokens 
 unredeemed. 
 
 A memorandum cash book for tokens is kept, in which 
 the cashier is charged with the face value of the tokens given 
 to him at the start, and subsequently redeemed and credited 
 with the face value of tokens disbursed from time to time. 
 
 Daily Report of Logs Cut in Woods 
 
 The woods operations are, as a rule, reported to the office 
 daily on a form somewhat similar to that of Form 1 1. 
 
 This form is printed on cardboard to facilitate handling, 
 and contains details of the location of the logging opera- 
 tions, marks and numbers, and the board measure con- 
 tained in the various sizes of logs. These cards may form 
 the basis for the calculation of the stumpage. Stumpage is 
 usually calculated when the logs are delivered at some 
 definite point, such as in the pond, to the railroad, at a 
 particular slide, or to the mill itself. The point at which 
 stumpage is calculated varies in accordance with the prac- 
 tice of the mill. A summary of the logs delivered at the 
 point for stumpage calculation will be made from the scale 
 cards turned in. 
 
 Log Summary 
 
 The scale cards are turned in daily and entered in the 
 monthly log summary, which shows the monthly result of 
 logging operations and cumulative totals to date. (Form 12.) 
 
40 LUMBER MANUFACTURING ACCOUNTS 
 
 Mark Book 
 
 In a number of cases logs are floated for a considerable 
 distance from various locations, and it is necessary to keep a 
 record of the marks and feet of the various logs handled. 
 Some mills carry a great number of different marks. A 
 book containing a sufficient number of columns ruled for 
 quantities will take care of this. Logs belonging to other 
 mills will be separately shown and paid for at agreed rates. 
 
 Daily Scale Logs Cut by Mill 
 
 As each log reaches the head of the gangway prior to 
 sawing, it is scaled and recorded on Form 13. 
 
 The form shown contains details of the marks and 
 number, the board feet contained in each length, and an 
 operating report. Segregation may be made into such 
 classes of logs as may be required. If a segregation is 
 made, the classification, to be of any value, must be carried 
 out in its entirety ; and the lumber produced must be similarly 
 scaled to the yard. The sales journal must also contain a 
 similar segregation so as to arrive at the inventory. 
 
 Report of Mill Cut 
 
 Form 14 contains the details of the daily operations for 
 the month, showing the result of the mill operations during 
 the day and night shifts. 
 
 The details of the time and the log scale to mill are 
 entered from the daily scale to the mill (Form 13) and the 
 details of the lumber cut daily are entered from the lumber 
 record (Form 15). 
 
 Daily Record of Lumber Cut 
 
 The daily record shown in Form 15 contains details of 
 the lumber delivered from the sorting chain to the yard, and 
 
LOGGING AND SAWMILL COSTS 4I 
 
 is compiled from the delivery tickets which accompany each 
 buggy load. 
 
 At the end of each month the lumber in the sorting sheds 
 but not delivered to the piles and the lumber in course 
 of manufacture, is estimated for inventory purposes. 
 
 Piling Ticket 
 
 As the lumber is delivered from the sorting chain to 
 the buggies for piling, a ticket is made out for each load in 
 the form shown (Form 16). 
 
 The original of this ticket goes to the general office and 
 is entered on Form 15 ; and if the piling is done by contract 
 the duplicate is handed to the contractor, who turns it in 
 as a voucher to substantiate his account. 
 
CHAPTER V 
 
 PUBLIC UTILITIES AND OUTSIDE OPERATIONS 
 
 Railroads 
 
 A considerable amount of revenue is frequently derived 
 from public utilities such as railroads and lighting and 
 water plants which were originally installed for the benefit 
 of the mill itself. A railroad may have been installed for 
 the purpose of hauling supplies, logs, and lumber for the 
 mill; but as the country opens up, a general freight and 
 passenger business develops, in which case the road is gen- 
 erally incorporated as a separate proposition. In nearly 
 every case, such a road makes interstate connections, and 
 the form of its accounts is therefore prescribed by statute. 
 In the books of the mill itself, a controlling account only is 
 necessary, the balance of this account being represented by 
 the assets and liabilities of the railroad. In billing freight, 
 and in hauling and switching charges, the mill itself should 
 be treated in the books of the railroad merely as an ordinary 
 customer. If the road is used only for mill purposes, the 
 cost of operating will be distributed over the various opera- 
 tions concerned, such as logging, lumber, supplies, etc. 
 
 Power, Light, and Water 
 
 The electric power plant is operated primarily for the 
 purpose of supplying the mill with power and light, but it 
 frequently supplies also the mill-town and the adjacent vil- 
 ages and farms. It is customary to charge flat rates only, 
 based on the number of lights used, or per horse-power in 
 
 42 
 
PUBLIC UTILITIES AND OUTSIDE OPERATIONS 43 
 
 the case of a power load. A consumers ledger is, of course, 
 necessary, but this can be of any good standard form. 
 
 With regard to the treatment of revenue, derived from 
 light and power, two methods are in use. Under the first 
 method, the revenue is credited against the operating cost, 
 and the net result charged to the mill ; and in the other, the 
 power production is treated as a separate operating division, 
 charging the mill with power and light at cost, and its con- 
 sumers, presumably, at a profit. The net result, so far as 
 the company itself is concerned, is the same; but the latter 
 method is the more scientific, and the information obtained 
 is a useful guide in fixing rates. Direct costs, such as main- 
 tenance of lines to consumers, are charged against the con- 
 sumers' revenue, together with a proportion of the cost of 
 production based on the relation between the kilowatt hours 
 as metered to the consumers' distribution lines, and the total 
 station production. Under this method, the mill is charged, 
 as nearly as possible, with the true cost of the kilowatt 
 hours it consumes, and the lumber cost is more accurately 
 ascertained. 
 
 In the case of the water department, it is usually imprac- 
 ticable to apportion the costs; and the revenue must there- 
 fore be credited against the cost of operations, and the 
 resulting balance be charged to the mill. As in the case of 
 the power operations, any good standard form will take care 
 of the consumers' accounts. 
 
 Land Department 
 
 The land department handles the sales of real estate. A 
 ledger containing particulars of the sales is necessary, and 
 Form 17 will be found convenient. 
 
 Details as to location of property, and as to purchaser 
 and terms of payment, are entered in the ledger. Individual 
 sales are entered from the journal, and the collections, from 
 
44 LUMBER MANUFACTURING ACCOUNTS 
 
 the cash book. The total of the balances on this ledger will 
 agree with the balance shown in the "Accounts Receivable 
 Land Department" account in the general ledger. 
 
 As already stated, the proportion of the profit on instal- 
 ment sales of land which should be transferred to Surplus, 
 is a question which must be settled by the circumstances 
 of each particular case. Usually the whole of the profit is 
 credited at the time of the sale, it being contended that, as 
 each sale is secured, this course is legitimate. Against this 
 argument, however, is the fact that, if the lands, as distinct 
 from timber, are carried at any value on the books, the lands 
 unsold and probably unsalable will still remain at book 
 value when logging operations are completed. 
 
 Outside Operations 
 
 If outside operations, such as bending works, veneer 
 works, sash and door factory, etc., are carried on in conjunc- 
 tion with the sawmill, considerable difficulty arises in ascer- 
 taining what amount should be charged to these operations 
 in respect of the product of the mill itself. Theoretically, 
 the cost of the material used should be charged; but this 
 cost is practically never known, and it is quite impracticable 
 to ascertain it, as the cost of doing so would be prohibitive 
 and the required result almost impossible to arrive at. These 
 outside operations in nearly every instance use special 
 qualities, cuts, and sizes ; and it is obvious that in a mill of 
 any size it would be absurd to attempt to segregate the 
 costs. Probably the most practical method is to charge out 
 the board measure consumed at the average cost of the 
 general production ; while, of course, this cannot be called a 
 true cost, it is sufficiently accurate for all practical purposes. 
 
 The outside operations here mentioned involve cost sys- 
 tems too elaborate for discussion in this volume, which is 
 intended to deal with the operations of the sawmill only. 
 
PUBLIC UTILITIES AND OUTSIDE OPERATIONS 
 
 45 
 
 Boarding House and Hospital 
 
 Although they could hardly be classed as outside opera- 
 tions, the boarding house, hospital, stable, and commissary 
 may be conveniently considered under this heading. The 
 boarding house is often handled by a contractor, and the 
 resulting profit or loss does not affect the company one way 
 or the other; if, however, it is operated by the company, it 
 should be charged with all supplies and wages, and credited 
 with the board bills deducted from the pay-roll. The profit 
 or loss arising from its operation should be separately shown. 
 The hospital, when operated by the company, is treated in 
 the accounts in a similar manner. 
 
 Stable 
 
 Theoretically, the stable should show neither a profit 
 nor a loss ; but in actual operation it is bound to do one or 
 the other. All expenses in connection with the stable 
 feed, wages, depreciation, etc. are charged to that account, 
 the credits being derived from the various operating divi- 
 sions, which are charged for the service of teams at a per 
 diem figure representing the cost of such service, as nearly 
 as it is possible to approximate it. It is better to show the 
 resulting balance as a special profit or loss, rather than to 
 attempt to distribute it over the operating divisions. Its 
 effect on the cost of lumber is, or should be, infinitesimal. 
 
 Commissary and Warehouse 
 
 The commissary is a general store for supplying goods 
 to the mill employees, and can be run on the same lines as an 
 ordinary retail store, a controlling account only being carried 
 in the mill books. The commissary will be charged with all 
 purchases made on its behalf, and credited with the cash 
 paid in or deducted from the pay-rolls. The business of the 
 commissary being largely a credit one, a form of ledger is 
 
46 LUMBER MANUFACTURING ACCOUNTS 
 
 required, the MacKaskey being probably the most convenient 
 pattern. Accounts due by the various employees are de- 
 ducted from the amount of wages payable at each pay-roll 
 period. Goods supplied to the camps or other operating 
 divisions are credited to the commissary, and charged to 
 operations by means of a journal voucher at the end of 
 each month or other convenient period. 
 
 The warehouse is charged with all goods delivered to it, 
 and credited from the requisitions supplied to camps, com- 
 missary, etc. A separate account should be kept for each 
 class of goods. The balances on these various accounts 
 should agree with the physical inventory when taken. 
 
CHAPTER VI 
 
 SHIPPING DEPARTMENT 
 
 The records of the shipping department are among the 
 most important in a sawmill, as the selling department is 
 very dependent upon their accuracy. Inaccurate billing is a 
 source of annoyance to both customer and manufacturer. 
 
 Orders 
 
 As soon as an order has been received, a copy is made 
 on Form 18, which is filed in the general office and forms 
 part of the permanent records. 
 
 At the same time that the office copy is made, an exact 
 duplicate is made on a card of the same size, which is sent 
 to the shipping clerk. 
 
 Tally Card 
 
 As soon as the shipping clerk has received the orders 
 for the day, he enters up the necessary tally card, which 
 contains practically the same information as the order, with 
 the exception of the customer's name. (See Form 19.) 
 
 The shipping clerk enters on this card the particulars of 
 the shipment required, by pieces, sizes, lengths, and descrip- 
 tions ; and it is then given to the tally man, who places it on 
 a board beside the car which is being loaded, and enters 
 thereon exact details of the actual shipment. A separate 
 card is used for each truck load. 
 
 Shipments may be made direct from the yard, or may 
 come from either the dry shed or planing mill. If from 
 
 47 
 
48 LUMBER MANUFACTURING ACCOUNTS 
 
 the dry shed, a small tally card similar to that shown in 
 Form 20 is made out. 
 
 This card accompanies the truck from the shed to the 
 loading platform, and the number of pieces are checked and 
 entered in the proper column on the tally card. The card 
 is placed in a small envelope, and eventually returned to the 
 general office. 
 
 Delivery Card 
 
 When boards are to be planed, the delivery card shown 
 in Form 2 1 is made out. 
 
 This card accompanies the truck from the yard or sheds 
 to the planing mill, where its contents are checked. The 
 top half of the card is retained, and at the end of the day 
 is turned in to the general office as a record of the amount 
 of work done by the planing mill during that day. When 
 the boards have been planed, the bottom half of the card is 
 detached, and accompanies the truck from the planer to the 
 loading platform, where its contents are checked and en- 
 tered on the tally sheet. Forms 20 and 21 are checked by 
 the general office against Form 19 as an additional pre- 
 caution. 
 
 Piece Tally Sheet 
 
 Details of the tally by pieces are made up on the piece 
 tally sheet, which contains the working details for entry on 
 the original tally card (Form 19). Form 22 will be found 
 convenient for this. 
 
 Marginal figures indicating surface feet can be printed 
 in the first column of each section of the piece tally sheet, 
 if desired. This may save a little time when tallying. The 
 totals of columns, when extended and added, must be in- 
 creased if the boards exceed an inch in thickness. 
 
 The original tally card (Form 19) when complete is 
 returned to the shipping clerk, and he in turn sends it, ac- 
 
SHIPPING DEPARTMENT 49 
 
 companied by the duplicate card of Form 18, to the invoice 
 clerk, who makes the summary of the shipment on the 
 order forms, and prices and extends it. The invoice is then 
 made out, one copy going to the customer, the duplicate 
 being filed with the selling department, and the triplicate 
 filed in the general office. 
 
 Daily Loading Record 
 
 The details of the loading are entered from, the tally 
 cards on the summary shown in Form 23. 
 
 Car and Loading Record 
 
 Each car as it is switched to the company's sidings is 
 entered on the car record sheet shown in Form 24. 
 
 When the car is loaded, full particulars are entered, 
 including the date and hour released. This form enables 
 the management to check all claims for demurrage, etc., 
 and shows at a glance the available number of cars. 
 
CHAPTER VII 
 
 MONTHLY AND ANNUAL CLOSING 
 
 Method of Closing 
 
 In the majority of cases, lumber manufacturing concerns 
 close their accounts monthly, as well as annually, so that 
 the operating costs may be more closely watched. The 
 method of closing is the same in both cases, except that at 
 the end of the fiscal year the inventories are more accurately 
 taken and the accounts are closed on the physical rather 
 than the book inventory. Accruals for taxes, interest, in-' 
 surance, and other matters of like character are entered; 
 and trial balances are taken of the customers ledger, of the 
 detailed construction ledger, and of the detailed operating 
 ledger, and these are agreed with the respective controlling 
 accounts in the general ledger. The outstanding vouchers 
 are listed, and agreed with the balance shown on the Ac- 
 counts Payable account in the general ledger. Stumpage 
 is then calculated at log scale on the logs delivered to the 
 mill, pond, railroad, or other point at which it has been de- 
 cided to calculate the stumpage, and is debited to Logging 
 account and duly credited to Timber account. Provision for 
 the sinking fund is also made at the basic price, at log 
 scale or lumber scale, as the case may be, if the deed calls 
 for sinking fund provision by either of these methods. If 
 the deed calls for a definite payment in consideration of the 
 release of lands, the necessary amount will, of course, have 
 been already paid. 
 
 50 
 
MONTHLY AND ANNUAL CLOSING 51 
 
 Inventories 
 
 The inventory of logs will be ascertained from the log- 
 ging records. Owing to operating conditions, it is usually 
 impossible for a physical inventory to be taken, especially 
 where the logs are transported by water or stored in a pond. 
 
 The inventory of lumber will be taken, and the mill over- 
 run or underrun ascertained. In case either is excessive, the 
 excess should be capable of explanation. Most frequently 
 the discrepancies arise either in the scaling of the logs to 
 the mill or in the output. Errors of this character are ex- 
 ceedingly hard to locate; but if the lumber be over or under- 
 scaled it usually shows up in the following month. 
 
 Except at the end of the year, the book account of logs 
 and lumber inventories should never be closed ; but all other 
 accounts can be closed if desired. If the inventory is brought 
 down each month, the true cost is not ascertained. The cost 
 price is arrived at by taking into consideration the inventory 
 at the beginning of the year, and all transactions since that 
 time to the date of the accounts. Intermediate inventories 
 must be ignored in order to arrive at the cost to a particular 
 date. The cost of the sales during the month is ascertained 
 by multiplying the number of board feet sold by the cost of 
 production per thousand feet to date. This amount is 
 charged to Cost of Sales and credited to Lumber account. 
 
 In a number of mills, particularly the older ones, the 
 product cannot be scaled from the saw, owing to structural 
 arrangements; and in small mills the scaling cost is some- 
 times considered prohibitive. In such cases, the monthly 
 inventories must be more or less a matter of estimate. They 
 can be approximately arrived at by adding to the log scale 
 the percentage of overrun based on the actual scale of an 
 average log. At frequent intervals, a log of average length 
 and diameter should be accurately scaled from the saws so 
 that the percentage of overrun may be properly verified. 
 
52 LUMBER MANUFACTURING ACCOUNTS 
 
 Calculating Depreciation 
 
 Depreciation must be calculated at the ascertained rate, 
 which is arrived at by dividing into the cost of the plant 
 the number of available board feet, and multiplying this 
 by the number of feet produced during the period. Special 
 depreciation is necessary in connection with certain items, 
 particularly in regard to the logging equipment. If 
 "donkeys" are used for skidding logs, for instance, the 
 average life of wire ropes is probably not much more than 
 six months. 
 
 Form of Statement 
 
 With regard to the form in which the monthly or annual 
 statement should be shown, the practice will naturally vary 
 in accordance with the requirements of each individual 
 concern. Some forms are exceedingly elaborate, w r hile 
 others are so incomplete that material information is lack- 
 ing. The form of report should give the details of logging 
 and lumber costs as extracted from the detailed operating 
 ledger, showing the amount charged under each heading 
 and the cost per thousand feet. Forms of monthly report 
 combining the general and detailed information are given 
 in Forms 25 and 26. It will be understood that these are 
 only suggestive, and, although similar forms are actually 
 in use and have been found satisfactory, experience shows 
 that the requirements of the management often necessitate 
 more elaborate reports. 
 
CHAPTER VIII 
 
 DEBATABLE POINTS IN LUMBER 
 ACCOUNTING 
 
 Divergent Views 
 
 There are several important points in connection with 
 lumber accounting which have never been settled either by 
 accountancy practice or by the custom of the trade. In 
 fact, widely divergent views on certain material questions 
 are held by both lumber men and accountants. It is not 
 proposed to deal with all of these questions, but only with 
 the principal ones, which are given here and considered in 
 order later in the chapter. 
 
 1 i ) Can an amount be credited to the Surplus account 
 as representing the unearned increment arising 
 from the increased value of the standing timber? 
 
 (2) Should the value of uncut lands be included as 
 part of the surplus? 
 
 (3) Is it legitimate to add to the value of the stand- 
 ing timber, interest and taxes on temporarily un- 
 productive areas? 
 
 (4) At what price should the inventory of lumber be 
 valued ? 
 
 (5) If the inventory of lumber be priced at cost, what 
 constitutes true cost? 
 
 53 
 
54 LUMBER MANUFACTURING ACCOUNTS 
 
 (1) Disposition of Unearned Increment 
 
 Can an amount be credited to the Surplus account 
 as representing the unearned increment arising from the 
 increased value of the standing timber? 
 
 That the timber increases in value by the passage of 
 time is undoubtedly a fact. Increase in girth and length 
 represents a proportionate increase in the value of the 
 product, but the growth is so slow that it is practically in- 
 considerable and is probably more than offset by the 
 liability to forest fires and destructive natural causes. There 
 is often, however, a material increase in value arising from 
 the general depletion of timber lands and the increasing 
 demand for forest products; and this movement cannot be 
 ignored. 
 
 In practice it will be found that alleged increases in 
 value are occasionally taken credit for; but it cannot be 
 claimed that such increases constitute divisible profits. 
 They should more properly be credited to a special reserve 
 account, or should, at least, be shown as surplus not avail- 
 able for distribution. 
 
 (2) Value of Uncut Lands 
 
 Should the value of uncut lands be included as part of 
 the surplus? 
 
 The value of lands not cut over is wholly problematical 
 and is dependent on geographical, climatic, and other con- 
 ditions. In the majority of cases a certain value exists, 
 and it is often considerable; but granting this, the land 
 itself especially the more remote portions is practically 
 valueless, while the timber is still in situ. 
 
 As previously stated, the usual practice is to appraise 
 standing timber only as security for a bond issue and as 
 the basis for the charge to logging cost; the method of 
 
DEBATABLE POINTS IN LUMBER ACCOUNTING 55 
 
 appraisal being to divide the number of feet, as cruised and 
 estimated, into the book value. This is a sound and con- 
 servative method; and at the outset probably every lumber- 
 man intends to follow it. It will, however, be found that 
 the custom of writing up assets is a popular one when 
 times are bad, and that the practice of including the value 
 of uncut lands recommends itself particularly to a company 
 desirous of showing a substantial surplus to its stockholders 
 or bondholders. This custom is undesirable in many ways, 
 and more especially because in numerous cases it is the land 
 itself which will provide for the return of the stockholders' 
 original capital. 
 
 In this respect lumber investments are different from 
 mining. It is common knowledge that in a mining proposi- 
 tion every dividend paid represents partly profit and partly 
 capital ; but the investor in the stock of lumber manufactur- 
 ing concerns occasionally views the matter somewhat differ- 
 ently, because at least in some localities the stockholder 
 looks to the timber to provide dividends, and to the land 
 underlying the timber to provide for the return of the 
 capital. While this view is quite justified in numerous 
 cases, there are many where it is not, and where even the 
 value of the plant and equipment is included in the timber 
 values, the land of itself being of no value, or of such small 
 value as to be unworthy of consideration. Any amount 
 taken credit for by this means is undoubtedly a profit which 
 is merely estimated and wholly unrealized, and one which 
 cannot, on the face of it, be wholly realized until the 
 timber resources are exhausted. It is not a divisible profit, 
 and should therefore be credited to "Reserve for Apprecia- 
 tion Added to Lands and Timber" or some similar account, 
 or, if objection is raised to this method of treatment, should 
 be shown as an appropriation of surplus, and expressly 
 described as not available for distribution. 
 
56 LUMBER MANUFACTURING ACCOUNTS 
 
 (3) Interest and Taxes on Temporarily Unproductive Areas 
 
 Is it legitimate to add to the value of the standing timber, 
 interest and taxes on areas temporarily unproductive? 
 
 Most timber propositions are bonded ; and interest must 
 be paid on an investment, of which a large proportion is 
 unproductive. Therefore, the question as to what propor- 
 tion (if any) of this interest may legitimately be borne by 
 the unproductive part of the investment, must be seriously 
 considered. If the timber is not bonded, or is bonded for 
 less than its actual value, it would certainly be undesirable 
 to add interest to the whole investment and so make a 
 bookkeeping profit on the transaction; but where interest 
 on bonds or other securities has actually been paid, and the 
 proceeds have been wholly devoted to the purchase of timber 
 lands, interest on unproductive areas probably constitutes 
 a legitimate capital charge, and one which may be said to 
 be sanctioned by custom. It would be a hardship in a 
 great many cases should the common stockholder be ex- 
 pected to bear the whole of the interest charge on a proposi- 
 tion, the greater portion of which is unproductive. In con- 
 sidering this question, however, it must be borne in mind 
 that, when an issue of bonds is promoted, it is invariably 
 anticipated that the operations of the mill will be sufficiently 
 profitable to provide for the payment of the whole of the 
 bond interest out of earnings in each year. 
 
 With regard to taxes, it may be stated that the practice 
 of adding amounts so paid on unproductive areas is almost 
 universal. In some cases, the cost of fire patrol and pro- 
 tection is also added to the cost of the standing timber. 
 
 If interest and taxes, etc., are added to the value of 
 lands and timber, they vitally affect the stumpage value. 
 Stumpage being based on the cruise and book value, all 
 additions by way of purchase, or such additions in estimated 
 value as are now being considered, naturally affect the log- 
 
DEBATABLE POINTS IN LUMBER ACCOUNTING 
 
 57 
 
 ging cost. In practice, it is usual to add to the result ob- 
 tained by dividing the number of feet as cruised, into the 
 book value, a certain amount per thousand feet so as to be 
 on the safe side; and this is done in spite of the fact that 
 the actual production usually overruns the estimated yield. 
 At the moment, however, when the result obtained by 
 dividing the number of feet remaining uncut into the book 
 value, exceeds the figure at which the stumpage value has 
 been accepted as a basis for the charge to logging account, 
 the stumpage value must be increased proportionately, so 
 that the book value of the timber may be entirely exhausted 
 when the total area has been completely logged off. It will 
 thus be seen that, eventually, operations assume the whole 
 of the cost, including interest added (if any), and that the 
 addition of expenditures on unproductive areas merely ap- 
 portions the cost as between years. 
 
 The inclusion of interest and similar additions to capital 
 values should be objected to in every case as constituting 
 mere "paper" additions, which have no value or existence 
 in fact ; but cases arise where such additions are practically 
 unavoidable and are supported by reasonably sound argu- 
 ments. The accountant called upon to consider this difficult 
 question must be absolutely satisfied that the facts of the 
 particular case warrant the inclusion, and must be very 
 sure that he is in possession of all the facts, and of the 
 reasons for the inflation of values. 
 
 If such additions must eventually be admitted, it is 
 certainly preferable to state them in the balance sheet as 
 "Deferred Charges to Operations," rather than to conceal 
 the items in the timber values. The whole of the timber 
 values, of course, eventually finds its way into the cost of 
 operations, but a segregation should certainly be made in 
 the balance sheet between the actual value (cost) of the 
 timber and items such as interest, etc. 
 
58 LUMBER MANUFACTURING ACCOUNTS 
 
 (4) Pricing the Inventory 
 
 At what price should the inventory of lumber be 
 valued? 
 
 This is undoubtedly one of the most difficult questions 
 in lumber accounting. No uniformity of practice exists, 
 and there are arguments in favor of all methods. "Cost 
 or market price, whichever is the lower," has been an ac- 
 cepted axiom in accounting circles, and it is one which is 
 safe, conservative, and eminently adapted to general 
 practice. With regard to lumber accounting, however, the 
 situation is somewhat changed, and other methods must 
 be seriously considered by the accountant, even at the risk 
 of being termed iconoclastic. It is absolutely necessary to 
 adopt a definite basis, and it is unreasonable to suppose that 
 any lumberman would allow cost price to be adopted in 
 one period and market price in another, or that he would 
 permit some portions of his product to be valued at market 
 price and some at cost. The lumber inventory must be 
 treated as a whole, and not as a collection of units requir- 
 ing separate treatment. 
 
 There are three methods of valuing the inventory of 
 lumber, namely : 
 
 (a) Cost price 
 
 (b) Selling price, less a deduction for handling 
 charges, etc. 
 
 (c) Fixed price 
 
 (a) Cost Price. The question as to what constitutes 
 true lumber cost is discussed later, and it is assumed that 
 the actual cost has been definitely settled and the inventory 
 priced at that figure. So far so good ; but what is the situa- 
 tion? The prices obtained in the Northwest for ordinary 
 commercial lumber, produced at a cost of, say, $11 per 
 thousand, vary from $8.50 to $40 per thousand. In hard- 
 
DEBATABLE POINTS IN LUMBER ACCOUNTING 
 
 59 
 
 Woods the variations are much greater. It is evident that 
 it costs precisely the same amount to saw, edge, trim, grade, 
 and pile a high-grade board as one of the lowest grade of 
 "mill run." For this reason the cost cannot be apportioned 
 in any way as between high and low grades; in fact, to 
 attempt to do so would be to destroy the cost principle at 
 the outset. It naturally follows, therefore, that, if the yard 
 contains an overwhelming preponderance of low-grade 
 lumber, the cost price is not the best basis. In general prac- 
 tice, however, it will be found that, for commercial lumber, 
 the cost basis works out excellently, while for "hardwood" 
 lumber it does not always do so. In this case, the prices 
 vary more than in commercial lumber, and the cost is 
 higher. There may be an active demand for high-grade 
 oak or gum, leaving a high percentage of low-grade lumber 
 in the yards; and if the inventory be priced at cost, this 
 will result in anticipating a profit which is not only un- 
 realized, but is actually unrealizable under any circum- 
 stances. On the other hand, presuming that the low-grade 
 boards have been disposed of and the high-grade lumber 
 remains in the pile, the results for the year will in all 
 probability show a loss if the inventory be priced at cost, 
 and it is very much to be doubted whether the results 
 arrived at on this basis disclose what has actually been ac- 
 complished by the mill during the period under considera- 
 tion. 
 
 (b) Selling Price Less Charges. This method involves 
 the grading of all lumber in the yards, which is, of itself, a 
 tedious process. After grading, the lumber is valued at 
 the current market price ; and a deduction, based on previous 
 experience, is made for the estimated cost of handling the 
 lumber from the pile to the car, and for breakage and de- 
 grade. This method of pricing is a fairly common one, 
 
60 LUMBER MANUFACTURING ACCOUNTS 
 
 especially among hardwood lumbermen; but it has little to 
 recommend it, inasmuch as it involves anticipated and un- 
 realized profits to an extent which exceeds the line of safety, 
 including profits which, owing to market fluctuations, may 
 never be realized at all. Accountants invariably dislike to 
 cut and slash figures submitted by a client, but, where an 
 inventory has been priced on this basis, such a proceeding 
 becomes almost inevitable. In some cases, it will be found 
 that in addition to deductions for handling, a fixed per- 
 centage is also deducted (10% is common), but frequently 
 this percentage is insufficient to provide for market fluctua- 
 tions and selling expenses. 
 
 (c) Fixed Price. The term "Fixed Price" has been 
 adopted for the lack of a better term. Once the price under 
 this basis is "fixed," it becomes, in the absence of special 
 conditions, the inventory price for that particular grade of 
 lumber at each stocktaking period. As in the case of a 
 valuation at selling price, it involves the grading of the 
 lumber in the yard, and is, generally speaking, impracticable 
 in the case of large concerns manufacturing commercial 
 lumber. In the case of the more valuable woods, the lumber 
 is usually graded at inventory time in any case. 
 
 The fixed price for each grade should be based on a 
 price below which the market has never fallen, less a deduc- 
 tion for handling charges, breakage and de-grade, selling 
 expenses, etc. It practically means that the lumber in- 
 ventory is included at a price at which it could be dis- 
 posed of at any moment. 
 
 This method has the advantage that it tends to produce 
 more evenness in results, and the rate of profit does not 
 fluctuate so much between periods, as may be the case when 
 "cost" or "market" is adopted as the basis of pricing the 
 inventory. 
 
DEBATABLE POINTS IN LUMBER ACCOUNTING 6l 
 
 (5) Cost and True Cost 
 
 // the inventory of lumber be priced at cost, what con- 
 stitutes true cost? 
 
 In considering this question, it will be found that marked 
 differences of opinion exist. All lumbermen are agreed that 
 logging, pond, and sawmill costs; power-house, yard, and 
 general operating expenses; and depreciation of plant and 
 machinery, should enter into the cost of the lumber in the 
 yards ; but as to whether dry kiln and planing mill expenses 
 and expenses incurred during the closed period (if any) 
 should be included, there is no uniformity of opinion. The 
 operations of the dry kiln and planing mill add very little, 
 if anything, to the value of the lumber, except to make it 
 more immediately salable and to reduce freight rates ; more- 
 over, it is probable that only a percentage of the lumber in 
 the pile has gone through these processes; but, in spite of 
 this fact, it is the usual custom to include the expense of 
 operating the dry kiln and planer as part of the lumber cost. 
 It is difficult to find convincing arguments to support the 
 inclusion of these items in the cost of manufacture, as they 
 might more properly be termed the costs of preparing the 
 lumber for shipment. They should not, therefore, be in- 
 cluded in arriving at the price basis for the inventory, and 
 it is unfortunate that general custom should in any way 
 sanction the inclusion of such costs. 
 
 A number of mills shut down during certain months of 
 the year; and during this closed period, overhead and other 
 expenses are incurred. The time is usually occupied in re- 
 pairing machinery, repiling the lumber in the yard, and 
 other similar operations. These operations do not, of 
 course, add anything to the value of the product, but are 
 expenses which are essential to the operations of the saw- 
 mill, and, as such, may legitimately be included as part of 
 the lumber cost. In practice it will be found that they are 
 
62 LUMBER MANUFACTURING ACCOUNTS 
 
 invariably included in arriving at inventory values in mills 
 where the cost of production is used as the basis of valua- 
 tion. It may be found convenient, in order to equalize the 
 expenses incurred during the closed period, to charge to 
 manufacturing cost each month a sum based on previous 
 experience sufficient to provide for the expenses during 
 the period in which the mill is shut down. These sums are 
 credited to a reserve account and the actual expenditures 
 charged against them, the resulting balance being charged 
 or credited to manufacturing cost at the end of the closed 
 period. 
 
CHAPTER IX 
 
 TECHNICAL TERMS USED IN THE LUMBER 
 BUSINESS 
 
 Accretion 
 Air-Dried 
 
 Band Saw 
 
 Belting 
 Board Foot 
 
 Board Measure 
 
 Board Rule 
 
 Boom 
 
 Boom Company 
 
 Boom Stay 
 
 Increase in diameter or height. 
 
 Lumber dried in the open air, as dis- 
 tinct from lumber which has been 
 kiln-dried. 
 
 An endless saw for cutting logs. Saw- 
 ing by band is more economical 
 than by circular, as the percentage 
 of sawing waste is less. 
 
 A ring cut round the tree to deaden 
 or kill it. This enables gum, cy- 
 press, etc., to be floated. 
 
 The contents of a board one foot 
 square and one inch thick. This 
 is the unit of measure for lumber 
 and logs. 
 
 The measuring standard, the unit of 
 which is a board foot. 
 
 A graduated stick for ascertaining 
 the contents of boards. 
 
 Logs fastened together used to hold 
 floating logs in place. 
 
 A corporation engaged in handling 
 and sorting floating logs. 
 
 A weight used to anchor a boom. 
 
 63 
 
LUMBER MANUFACTURING ACCOUNTS 
 
 Boom Stick 
 Burner 
 
 Caliper 
 Carriage 
 
 C. I. F. 
 
 Clean Cutting 
 
 Clear Length 
 Commissary 
 
 Commissary 
 Checks 
 
 Conveyor 
 
 Cruiser 
 
 Cull 
 
 Cut-off Saw 
 Cutover Lands 
 
 Timber forming part of a boom. 
 
 Burners may be open or closed, and 
 are used for destroying waste ma- 
 terial not required for production 
 of power, sale, etc. 
 
 An instrument used for measuring 
 the diameter of logs or trees. 
 
 The attachment to the sawmill used 
 for carrying the logs through the 
 saw. 
 
 Cost, insurance, and freight. 
 
 An area on which the whole of the 
 timber has been cut. 
 
 The portion of the stem free from 
 branches. 
 
 A general store for supplying goods 
 to lumbermen. 
 
 Form of order on the commissary 
 entitling employee to receive mer- 
 chandise. 
 
 An endless chain for carrying lum- 
 ber, refuse, etc., from the sawmill. 
 
 One who estimates the amount of 
 standing timber in the woods. 
 
 Logs rejected or deductions made 
 in measuring logs on account of 
 defects. 
 
 A saw used for cutting logs to re- 
 quired lengths before entering the 
 sawmill. 
 
 Lands on which the whole of the 
 standing timber has been logged. 
 
TECHNICAL TERMS 
 
 Cutting Height 
 
 Deadening 
 De-grade 
 
 Double Band 
 Saw 
 
 Doyle Rule 
 
 Drift 
 Drive 
 
 Dry Kiln 
 Edger 
 
 The height above the ground at which 
 a tree is to be cut. 
 
 (See "Belting") 
 
 The amount which lumber runs under 
 a specified grade. 
 
 A band saw containing teeth on both 
 edges, which enables the log to be 
 cut on the reverse as well as the 
 forward movement of the carriage. 
 
 A rule for ascertaining the number 
 of board feet in a log of given 
 length and diameter. It is con- 
 structed by deducting four inches 
 for slab from the small end of the 
 log, squaring one-quarter of the re- 
 mainder, and multiplying the result 
 by length of the log in feet. Mill 
 cut usually overruns about 15 to 
 25 per cent for short logs, but is 
 higher for long logs with small top 
 diameter. 
 
 (See "Drive") 
 
 (1) To float logs or timber from 
 forest to mill or shipping point. 
 
 (2) A body of logs or timbers being 
 floated to mill or shipping point. 
 
 A kiln for quickly drying lumber so 
 that it can be immediately shipped. 
 
 A machine consisting of adjustable 
 saws for sawing boards into de- 
 sired widths and for removing the 
 waste edges from boards. 
 
66 LUMBER 
 
 Filing Room 
 
 Flume 
 
 f. o. b. 
 Forest Capital 
 
 Full Scale 
 Gangway 
 
 Grade 
 
 Haul-up 
 
 Hog 
 
 Incinerator 
 Increment 
 
 Jack Chain 
 Landing 
 
 MANUFACTURING ACCOUNTS 
 
 A room used by the filer for sharpen- 
 ing saws. 
 
 (1) An enclosed trough containing 
 running water used for transporting 
 logs. 
 
 (2) To transport logs by flume. 
 
 Free on board. 
 
 The capital represented by the forest 
 land and standing timber. 
 
 Measurements made without deduc- 
 tion for defects. 
 
 An inclined plane on which a jack 
 chain runs, used for transporting 
 logs from the pond or yard to the 
 mill. 
 
 To sort lumber into various classes. 
 (See "Gangway") 
 
 A machine for cutting offal into sizes 
 suitable for use under the boilers or 
 in the locomotives, etc. 
 
 (See "Burner") 
 
 The value or volume of timber pro- 
 duced by natural growth. 
 
 An endless spiked chain for t-ansport- 
 ing logs from one point to another. 
 
 (1) A place to which logs are hauled 
 prior to transportation. 
 
 (2) A platform where logs are col- 
 lected and loaded on cars. 
 
TECHNICAL TERMS 6 
 
 Lath Thin narrow strips of wood used in 
 
 building operations. Laths are 
 made in three thicknesses single, 
 half, and double. 
 
 Log Brow (See ''Landing") 
 
 Log Haul (See "Gangway") 
 
 Log Rule (i) A tabular statement of the 
 
 amount of lumber contained in a 
 log of given length and diameter. 
 (2) A graduated stick for measuring 
 diameters of logs. 
 
 Lumber The principal product manufactured 
 
 from timber. 
 
 Merchantable The total length of stem available for 
 Length use. 
 
 Merchantable The total volume of that portion of 
 Volume the tree available for use. 
 
 Mill Pond A pond near the sawmill in which logs 
 
 are stored until required. Ponds 
 may be hot or cold. The hot pond 
 is heated by steam and enables mill 
 operations to be continued during 
 the winter. 
 
 Mill Run The entire product of the mill; gen- 
 
 erally applied to board output. 
 
 Nigger A device for loading logs on the saw 
 
 carriage. 
 
 Offal The waste product of the board. 
 
 Pile ( i ) To arrange lumber in piles. 
 
 (2) A stack of lumber in the yard. 
 
 Pile Stick A board used for separating the layers 
 
 of lumber in the pile. 
 
68 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
 Planing Mill The place where boards are planed. 
 In the West the planing mill is 
 principally operated to reduce the 
 shipping weight of lumber. 
 
 Pocket Boom A boom for containing logs after they 
 are sorted. 
 
 Pole A tree from four inches to a foot in 
 
 diameter, breast high. 
 
 Releasing List A schedule attached to a mortgage 
 describing by parcels and contents 
 the lands covered by the mortgage. 
 
 Road Gang A crew of men engaged in cutting and 
 
 repairing logging roads. 
 
 Scale To determine the volume of logs. 
 
 Scale Book A book specially ruled for recording 
 
 the scale of logs. 
 
 Sealer One who determines the volume of 
 
 logs. 
 
 Scribner Rule A log scale based on computations de- 
 rived from diagrams drawn to show 
 the number of inch boards that can 
 be sawed from logs of different 
 sizes after an allowance for waste. 
 Gives fairly accurate results for 
 small logs, but not for large. Cut- 
 ting in sound logs, the overrun may 
 be 10 to 20 per cent. 
 
 Shingle A thin and small piece of wood used 
 
 for roofing, etc. 
 
 Single Band A band saw having a cutting edge on 
 
 Saw one side only. 
 
TECHNICAL TERMS 
 
 6 9 
 
 Size 
 Skid 
 
 Skidder 
 
 Skidway 
 
 Slabs 
 Slash 
 
 Sorting Boom 
 Sorting Jack 
 
 Stand 
 Standard 
 Standard Rule 
 
 A machine to dress lumber to a re- 
 quired size. 
 
 1 i ) To draw logs from the stump to 
 the skidway, landing or mill. 
 
 (2) To reinforce a road by placing 
 poles across it. 
 
 (3) The logs upon which logs are 
 handled or piled. 
 
 (1) One who skids logs. 
 
 (2) A steam engine which skids logs 
 by means of a cable. 
 
 Two parallel logs placed at right 
 angles to the road. Logs are 
 usually piled upon a skidway as de- 
 livered for loading purposes. 
 
 Waste product. 
 
 1 i ) The debris left after logging. 
 
 (2) Land covered with limbs and tops 
 of trees. 
 
 A boom used to guide logs into the 
 sorting jack. 
 
 A raft or platform in the stream con- 
 taining an opening for the passage 
 of logs to be sorted by marks and 
 diverted into pocket booms. 
 
 All growing trees in a forest or in 
 part of a forest. 
 
 A measurement of quantity used in 
 export shipments of lumber. 
 
 A rule based on comparison with the 
 merchantable contents of a log of 
 fixed length and diameter, known as 
 a standard log. 
 
70 LUMBER 
 
 Steam Hauler 
 
 Storage Boom 
 Stull 
 
 Stump 
 Stumpage 
 
 Timber Right 
 Tram Road 
 
 Trimmer 
 
 Trucks 
 
 Turpentine 
 Privileges 
 
 Used Length 
 Used Volume 
 
 Windfall 
 Yield 
 
 MANUFACTURING ACCOUNTS 
 
 A geared locomotive tor hauling 
 loaded sleds over an ice road. 
 
 A boom to hold logs in storage. 
 
 Round piling about 10 inches in 
 
 diameter used principally as mine 
 
 timbers. 
 
 The portion of the tree remaining be- 
 low the cut made in felling. 
 The standing timber ; in other words, 
 
 the value of the timber as it stands 
 
 uncut. 
 
 The right to cut or turpentine timber. 
 A railroad built and used for the 
 
 purpose of transporting logs from 
 
 woods to mill. 
 A machine consisting of a series of 
 
 gang saws for cutting boards into 
 
 the desired lengths. 
 Cars used for transporting logs from 
 
 woods to mill. 
 The right to extract the gum from 
 
 trees. 
 
 The sum of the length of logs cut from 
 
 a tree. 
 The sum of the volume of logs cut 
 
 from a tree. 
 
 A tree blown down by wind. 
 The amount of wood on a given area, 
 
 or the amount of wood which will 
 
 be found thereon at some future 
 
 time. 
 
Part II Records Used in Lumber 
 Manufacturing 
 
 CHAPTER X 
 
 FORMS 
 
 The forms submitted on the following pages are, for the 
 most part, actually in use, though some few have been 
 specially devised to include the best features of several differ- 
 ent related forms. It is not suggested that all the forms 
 desirable for any particular mill will be found in the present 
 chapter, or that all its records will be used in the exact form 
 in which they are shown here, for conditions may necessitate 
 additional information not provided for on these, and, as 
 already stated, the management may have a good deal to say 
 on the subject of the operating forms. 
 
 Exception may be taken to the fact that a form of daily 
 report is not submitted, but it will be readily understood that 
 circumstances and even location would have a marked effect 
 on the character and, therefore, on the form of this report. 
 For instance, where the organization is all under one roof, 
 an entirely different report would be required from that 
 necessary where the manufacturing operations and the finan- 
 cial operations are conducted in different places. As a 
 matter of fact, a specially devised form of daily report for 
 each mill is almost unavoidable. 
 
 Forms for the retail yard are not submitted, since this 
 can reasonably be considered an entirely separate business. 
 
72 
 
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 KT OF LOGS CUT IN WOODS 
 
 191 
 
 N 
 
 AN<2 
 
 o. ______ 
 
 f. - . 
 
 SEC 
 
 IOWM 
 
 
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 WHERE BANKED 
 
 
 
 No. 
 and /or 
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 Sealer 
 
 Form ii. >a% Report of Logs Cut in Woods. (See page 39.) 
 
FORMS 
 
 43 
 
 fr 
 
 s 
 
 3 
 
88 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
FORMS 
 
 8 9 
 
 111 
 
 x# 
 
 II 
 
90 LUMBER MANUFACTURING ACCOUNTS 
 
FORMS 
 
 
 J 
 
 1 
 
 
 
 
 
 
 
 
 
 Sealer | 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 i 
 
 
 
 
 
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 r 
 
 
 
 
 
 
 
 L 
 
 
 
 
 CO 
 
 16 
 
 
 
 
 
 
 
 J* 
 
 
 
 
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 L 
 
 
 
 
 
 
 
 
 
 
 
 
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 8 
 
 
 
 
 
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 r: 
 
 
 
 
 
 
 Ui 
 
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 N 
 
 
 
 
 
 
 
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 2 
 
 
 
 
 
 
 
 
 
 
 
 
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 7 
 
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 r 
 
 fc 
 
 
 
 
 
 
 
 
 
 
 
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 O 
 
 
 
 
 
 
 
 
 
 
 
 
 
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LUMBER MANUFACTURING ACCOUNTS 
 
FORMS 
 
 93 
 
 Date Received . 
 Date Shipped. 
 Invoice No. . 
 
 Order No 
 Ours 
 Theirs 
 
 Car Number . 
 
 Initials . 
 
 Capacity . 
 
 Seal No. . 
 
 P.O. 5. 
 
 Rate 
 
 ORDER 
 
 SOLD TO 
 
 ADDRESS 
 
 AT 
 
 Shipped Pncg Amount 
 
 Tallyman 
 
 Checked by 
 
 Form 18. Order Form. (See page 47.) 
 
94 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
 ORDER N< 
 SHIP TO 
 
 ORIGINAL TALLY 
 
 V CAB ftPT IN 1 OADEO IQI 
 
 
 DESTINAT 
 ROUTE Vi 
 CAR No 
 CAPACIT 
 
 lONf 
 
 A 
 
 INITIALS SEAL No. 
 
 / TACE WEIGHT CONDITION 
 
 Pieces 
 
 5i 3 e 
 
 Length 
 
 Description 
 
 Feet 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 ' 
 
 1 
 , 
 
 1 1 
 
 . 1 
 
 "^--^, 
 
 _ 
 "" ~~\ 
 
 
 
 
 __^- ^^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Sralr 
 
 Form 19. Tally Card. (See page 47.) 
 
FORMS 
 
 95 
 
 
 Date 
 
 Order No. 
 
 DRY SHED 
 
 Pieces 
 
 Description 
 
 
 
 
 
 
 
 
 
 
 O^fp, 
 
 Order No 
 
 DRY SHED 
 
 Pieces 
 
 Description 
 
 
 
 
 
 
 
 
 
 Form 20. Dry 
 
 Tally Card. (See page 47.) 
 
9 6 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
 
 0*4*, 
 
 DELIVER. TO PLANING MILL 
 
 Order No. 
 
 Pieces 
 
 Description 
 
 Feet 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Tallyman Sealer 
 
 
 Order 
 
 Dat* 
 
 PLANED AMD LAID OUT 
 
 Pieces 
 
 Description 
 
 reet 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Tallyman Scalar 
 
 21. Delivery Card. (See page 48.) 
 
FORMS 
 
 97 
 
 i 
 
 id 
 
 1 1 
 
 <n o 
 
 00 
 
9 8 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
 O 
 <J 
 
 u 
 
 CM 
 
 5 
 
 *! 
 
FORMS 
 
 99 
 
 
 
TOO 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
 REPORT FOE THE MONTH Of 
 
 COMPARATIVE BALANCE SHEET A3 AT 191 AND 191 | 
 
 ASSETS 
 
 191 
 
 191 
 
 Increase 
 Decnr-ase (Red) 
 
 Property and Plant 
 
 
 
 
 
 
 
 Current and Working Assets 
 
 
 
 
 
 
 
 5fn f KTnq e fuSr qC9 
 
 
 
 
 
 
 
 Other Assets (specify) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL. ASSETS 
 
 
 
 
 
 
 
 
 
 
 
 LIABILITIES 
 
 191 
 
 191 
 
 Decrease (Red) 
 
 Capital Stock 
 
 
 
 
 
 
 
 Bonds 
 
 
 
 
 
 
 
 Notes payable 
 
 
 
 
 
 
 
 Current Liabilities 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Surplus 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 --= ' 
 
 
 
 
 
 
 
 PROPERTY AND PLANT 
 
 CURRENT AND WORKING ASSETS 
 
 Account 
 
 Add thi month 
 
 To date 
 
 Account 
 
 This month 
 
 Last month 
 
 Timber 
 
 
 
 
 
 Cosh in Banks 
 
 
 
 
 
 Timber fronts 
 
 
 
 
 
 Cash on Hand 
 
 
 
 
 
 Plant and Equipment 
 
 
 
 
 
 Motes Receivable 
 
 
 
 
 
 Reilroad and Equipment 
 
 
 
 
 
 Accounts Receivable 
 
 
 
 
 
 Uncut Lands 
 
 
 
 
 
 
 
 
 
 
 Cut over Lands 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Loqs on Hand 
 
 
 
 
 
 
 
 
 
 
 Lumber on Hand 
 
 
 
 
 
 
 
 
 
 
 Supplies on Hand 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL 
 
 
 
 
 
 TOTAL 
 
 
 
 
 
 
 
 INCOME AMD PROFIT AMD LOSS ACCOUNT 
 
 ADDITIONS TO INCOME 
 
 Account 
 
 This month 
 
 To date 
 
 Account 
 
 This month 
 
 To date 
 
 Gross Profit on Lumber 
 
 
 
 
 
 ProFit - Light and Power 
 
 
 
 
 
 Lath 
 
 
 
 
 
 - Water 
 
 
 
 
 
 Sundries 
 
 
 
 
 
 " -Boardinci House 
 
 
 
 
 
 
 
 
 
 
 -Stables" 
 
 
 
 
 
 
 
 
 
 
 Miscellaneous 
 
 
 
 
 
 Total Gross Profit 
 
 
 
 
 
 TOTAU , 
 
 
 
 
 
 5elling Expenses 
 
 
 
 
 
 
 COME DEDUCTIONS 
 
 Snipping Expenses 
 
 
 
 
 
 
 
 
 
 
 
 
 jnf 
 
 This month 
 
 To date 
 
 Total Expenses 
 
 
 
 
 
 Accoi 
 
 Net Profit (Trading) 
 
 
 
 
 
 Interest on Bonds 
 
 
 
 
 
 Additions to Income 
 
 
 
 
 
 Other Interest 
 
 
 
 
 
 Total Income 
 
 
 
 
 
 Doubtful Accounts 
 
 
 
 
 
 Income Deductions 
 
 
 
 
 
 Miscellaneous 
 
 
 
 
 
 NET PROFIT 
 
 
 
 
 
 
 
 
 
 
 
 TOTAU, 
 
 
 
 
 
 Rteonarka: 
 
 
 
 
 
 
 
 
 
 
 Form 25. Monthly Statement (left). (See Chapter F/7.) 
 
FORMS 
 
 101 
 
 191 
 
 LOGGING ACCOUNT 
 
 Account 
 
 Cu'" 
 
 Arrv> 
 
 
 Tfer looo reet 
 
 Ihis mon+ti 
 
 To date 
 
 }ii6 month 
 
 To oat* 
 
 This month 
 
 Tbdafe 
 
 5tumpaqe 
 
 
 
 
 
 
 
 
 
 Purchased loss 
 
 
 
 
 
 
 
 
 
 Woods cost 
 
 
 
 
 
 
 
 
 
 Transportation and General Costs 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cost of" loqs delivered to Fbnd 
 
 
 
 
 
 
 
 
 
 Add Inventory at comrneoccrncnt of" rnonth or penod 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Deduct Fbnd Inventory at close of month 
 
 
 
 
 
 
 
 
 
 Coat ot loqs cut (log scale) carried to Lumber 
 
 
 
 
 
 
 
 
 
 Manufacturing} Account 
 
 
 
 
 
 
 
 
 
 LUMBER MANUFACTURING ACCOUNT 
 
 Account 
 
 Cut 
 
 Amo 
 
 unt 
 
 fter loo< 
 
 Feet 
 
 
 To date 
 
 This month 
 
 To di 
 
 te 
 
 TViis month 
 
 To date 
 
 Cost of logs (Lumber scale) from LoqgmgAcct. 
 
 
 
 
 
 
 
 
 
 rbnd Expense 
 
 
 
 
 
 
 
 
 
 Saw Mill Costs 
 
 
 
 
 
 
 
 
 
 Planing Mill Costs 
 
 
 
 
 
 
 
 
 
 Dry Kiln Costs 
 
 
 
 
 
 
 
 
 
 Yard Expenses 
 
 
 
 
 
 
 
 
 
 General Expenses 
 
 
 
 
 
 
 
 
 
 Depreciation 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL EXPENSES 
 
 
 
 
 
 
 
 
 
 Add Inventory af Commencement of month or perTboT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Deduct Inventory at close of inonth 
 
 
 
 
 
 
 
 
 
 TOTAV. MANUFACTURING Cost 
 
 
 
 
 
 
 
 
 
 UATH MANUrACTUR.)NG. ACCOUNT 
 
 Account 
 
 Pieces 
 
 Amount 
 
 Per IOOO 
 
 iVllS fTXKlH 1 
 
 Ibdaie 
 
 Thisirx 
 
 nVh 
 
 To da 
 
 fe 
 
 This month 
 
 To date 
 
 Labor - Contract 
 
 
 
 
 
 
 
 
 
 Labor - Company 
 
 
 
 
 
 
 
 
 
 Supplies * 
 
 
 
 
 
 
 
 
 
 Miscellaneous 
 
 
 
 
 
 
 
 
 
 Maintenance of Equipment 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Add InvenVory at Commencernent of month or period 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Deduct Inventory at close of month 
 
 
 
 
 
 
 
 
 
 TOTAV. MANUFACTURIHQ COST 
 
 
 
 
 
 
 
 
 
 TRADING ACCOUNT- 
 
 Account 
 
 Amo 
 
 unt- 
 
 Per 
 
 )00 
 
 Thii month 
 
 ie date 
 
 Thi month 
 
 Todafe 
 
 Lumber 
 
 
 
 
 
 
 
 5ole,6 
 
 
 
 
 
 
 
 Cost of sales 
 
 
 
 
 
 
 
 Gross Profit carried to Profit and Loss Account 
 
 
 
 
 
 
 
 Lath 
 
 
 
 
 
 
 
 3ales 
 
 
 
 
 
 
 
 Cost of sales 
 
 
 
 
 
 
 
 Gross Profit earned to Profit and Loss Account 
 
 
 
 
 
 
 
 Sundries 
 
 
 
 
 
 
 
 Sales 
 
 
 
 
 
 
 
 Cost of sales 
 Gross Profit carried TO Profit and Loss Account" 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 RemarKs 
 
 
 
 
 
 
 
 
 Form 25. Monthly Statement (right). 
 
IO2 
 
 LUMBER MANUFACTURING ACCOUNTS 
 
 DETAILED OPEEATllSQ REPOCT 
 
 LOGGING EXPENSE 
 
 YARDS 
 
 Account 
 
 Amount 
 
 fertooo 
 
 Account 
 
 Amount 
 
 ffer looo 
 
 Superintendence 
 
 
 
 
 Foremen & Assistants 
 
 
 
 
 Salaries 
 
 
 
 
 Labor 
 
 
 
 
 Expenses 
 
 
 
 
 Sorting from chain 
 
 
 
 
 Foremen and ClerKs 
 
 
 
 
 Transportation to piles 
 
 
 
 
 Salaries 
 
 
 
 
 Piling 
 
 
 
 
 Expenses 
 
 
 
 
 Shed p/aadinQ 
 
 
 
 
 dealers 
 
 
 
 
 Gene-raH 
 
 
 
 
 Salaries 
 
 
 
 
 Teaminq 
 
 
 
 
 Expenses 
 
 
 
 
 Maintenance of Yards 
 
 
 
 
 Sawinq 
 
 
 
 
 Labor 
 
 
 
 
 Contract Labor 
 
 
 
 
 Material 
 
 
 
 
 Company Labor 
 
 
 
 
 Maintenance of Equipment 
 
 
 
 
 Supplies 
 
 
 
 
 Labor 
 
 
 
 
 Maintenance of Camp Buildings 
 
 
 
 
 Material 
 
 
 
 
 Labor 
 
 
 
 
 Supplies 
 
 
 
 
 Material 
 
 
 
 
 Fire protection 
 
 
 
 
 Maintenance of Spur tracks 
 
 
 
 
 Insurance 
 
 
 
 
 Labor 
 
 
 
 
 General Expenses 
 
 
 
 
 Material 
 
 
 
 
 Depreciation 
 
 
 
 
 Maintenance of Equipment 
 
 
 
 
 
 
 
 
 Labo" 
 
 
 
 
 
 
 
 
 Material . 
 
 
 
 
 TOTAL VARDS 
 
 
 
 
 Road Buildtnq 
 
 
 
 
 DRV KILNS 
 
 Fire patrol and protection 
 
 
 
 
 General Expenses 
 
 
 
 
 Account 
 
 Amount 
 
 Per looo 
 
 Depreciation 
 
 
 
 
 Power 
 
 
 
 
 Transportation 
 
 
 
 
 Labor 
 
 
 
 
 rreiq'Tf- Rail road 
 
 
 
 
 Maintenance of Buildings 
 
 
 
 
 Raftina 
 
 
 
 
 Labor 
 
 
 
 
 Teams 
 
 
 
 
 Material 
 
 
 
 
 Teamsters 
 
 
 
 
 Maintenance of Equipment 
 
 
 
 
 Feed and stable help 
 
 
 
 
 Labor 
 
 
 
 
 ffepairs S- Blacksmith mq 
 
 
 
 
 Material 
 
 
 
 
 
 
 
 
 Supplies 
 
 
 
 
 
 
 
 
 General Expenses 
 
 
 
 
 
 
 
 
 Depreciation 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL WOODS EXPB.NSE 
 
 
 
 
 TOTAL Py KILNS 
 
 
 
 
 POND EXPENSE 
 
 POWER 
 
 
 
 
 
 Account 
 
 Arnount 
 
 
 Labor 
 Supplies 
 
 
 
 
 Oil and waste 
 
 
 
 
 Maintenance of Dams 
 
 
 
 
 Supplies 
 
 
 
 
 Labor 
 
 
 
 
 Maintenance of Buildings 
 
 
 
 
 Material 
 
 
 
 
 Labor 
 
 
 
 
 Maintenance ot equipment 
 
 
 
 
 Material 
 
 
 
 
 Labor 
 
 
 
 
 Maintenance of Machinery & Efquipt. 
 
 
 
 
 Material 
 
 
 
 
 Labor 
 
 
 
 
 General Expenses 
 
 
 
 
 Material 
 
 
 
 
 Depreciation 
 
 
 
 
 Insurance 
 
 
 
 
 
 
 
 
 General Expenses 
 
 
 
 
 
 
 
 
 Depreciation 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL POND EXFCNSE 
 
 
 
 
 Less cost of Power sold 
 
 
 
 
 SA\(V MILL 
 
 
 
 
 
 
 
 
 Account i 
 Power 
 
 
 
 Vr tooo 
 
 PLANING MILL 
 
 
 
 Foremen and assistants 
 
 
 
 
 Account 
 
 Amount 
 
 Ffer toOO 
 
 General Labor 
 
 
 
 
 Bower 
 
 
 
 
 Supplies 
 
 
 
 
 Foreman 
 
 
 
 
 Maintenance of Duildinqi 
 
 
 
 
 General Labor 
 
 
 
 
 Labor 
 
 
 
 
 Supplies 
 
 
 
 
 Material 
 
 
 
 
 Maintenance of Buildings 
 
 
 
 
 Maintenance of Machinery SCquipt 
 
 
 
 
 Labor 
 
 
 
 
 Labor 
 
 
 
 
 Material 
 
 
 
 
 Material 
 
 
 
 
 Maintenance of Machinery i CQuipt. 
 
 
 
 
 Insurance 
 
 
 
 
 Labor 
 
 
 
 
 General Expenses 
 
 
 
 
 Material 
 
 
 
 
 Depreciation , 
 
 
 
 
 Insurance 
 
 
 
 
 
 
 
 
 General Expenses 
 
 
 
 
 
 
 
 
 D*preci a t i on 
 
 
 
 
 
 
 
 
 
 
 
 
 1 TOTAL SAW MILL CxftNise 
 
 
 
 
 "" TCTTAL PLANINQ MILL Cxr>ENse 
 
 
 
 
 
 
 
 
 
 Form 26, Detailed Operating Report (left). (See Chapter VII.) 
 
FORMS 
 
 103 
 
 ro THE MONTH Of I9> 
 
 UATM MILL 
 
 SHIPPINQ EXPENSES 
 
 Account 
 
 Amount 
 
 Rrr looo 
 
 Account 
 
 Amount 
 
 Power 
 
 
 
 
 Salaries 
 
 
 
 Contract Labor 
 
 
 
 
 Shipping clerk & assifftants 
 
 
 
 Company Labor 
 
 
 
 
 Labor 
 
 
 
 Supplies 
 
 
 
 
 Trucking to platform 
 
 
 
 Maintenance of Buildings 
 
 
 
 
 Loadinq to cars 
 
 
 
 Labor 
 
 
 
 
 Supplies 
 
 
 
 Material 
 
 
 
 
 Ca,r stakes 
 
 
 
 Maintenance of Equipment 
 
 
 
 
 Labor 
 
 
 
 Labor 
 
 
 
 
 Material 
 
 
 
 Material 
 
 
 
 
 Demurrage 
 
 
 
 Insurance 
 
 
 
 
 Miscellaneous 
 
 
 
 General Expenses 
 
 
 
 
 
 
 
 Depreciation 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL. LATH V.ILL 
 
 
 
 
 "TOTAL SHIPPING EXPENSES 
 
 
 
 SHINGLE MILL 
 
 SELLING EXPENSES 
 
 
 Account 
 
 Amount 
 
 fertooo 
 
 Account 
 
 This month 
 
 LaaV Month 
 
 Logs 
 
 
 
 
 Salesmen 
 
 
 
 
 
 Contract Labor 
 
 
 
 
 Salaries 
 
 
 
 
 
 Company Labor 
 
 
 
 
 Expenses 
 
 
 
 
 
 Supplies 
 
 
 
 
 Advertising 
 
 
 
 
 
 Maintenance of Buildings 
 
 
 
 
 Commissions 
 
 
 
 
 
 Labor 
 
 
 
 
 Collections 
 
 
 
 
 
 Material 
 
 
 
 
 Miscellaneous 
 
 
 
 
 
 Maintenance of Equipment 
 
 
 
 
 
 
 
 
 
 Labor 
 
 
 
 
 
 
 
 
 
 Material 
 
 
 
 
 
 
 
 
 
 Insurance 
 
 
 
 
 
 
 
 
 
 QcprcciaTloo 
 
 
 
 
 
 
 
 
 
 b 
 
 
 
 
 GENERAL EXPENSES 
 
 ?; 
 
 
 
 
 t 
 
 
 
 
 Account 
 
 This month 
 
 Last mo 
 
 ith 
 
 
 
 
 
 Salaries of Officers 
 
 
 
 
 
 
 
 
 
 Expenses of Officers 
 
 
 
 
 
 
 
 
 
 Salaries of Clerks 
 
 
 
 
 
 
 
 
 
 Expenses of Clerks 
 
 
 
 
 
 
 
 
 
 Stationery & Printing 
 
 
 
 
 
 TOTAL SHiNaue MILL 
 
 
 
 
 Office Supplies 
 
 
 
 
 
 GENERAU OPERATING 
 
 EXPENSES 
 
 Telephone 
 
 
 
 
 
 Postage and Telegrams 
 
 
 
 
 
 Account 
 
 Amoun'f 
 
 ^r 1000 
 
 Taxes and Licenses 
 
 
 
 
 
 Paymaster 
 
 
 
 
 Insurance 
 
 
 
 
 
 Timekeepers 
 
 
 
 
 Legal Expenses 
 
 
 
 
 
 Watchmen 
 
 
 
 
 Depreciation of Office Bld'q. 
 
 
 
 
 
 Maintenance of Fire Apparatus 
 
 
 
 
 and Equipment 
 
 
 
 
 
 Labor 
 
 
 
 
 Miscellaneous 
 
 
 
 
 
 Material 
 
 
 
 
 
 
 
 
 
 Stable Expenses 
 
 
 
 
 
 
 
 
 
 Barn Boss & Helpers 
 
 
 
 
 
 
 
 
 
 Teed 
 
 
 
 
 
 
 
 
 
 Repairs 
 
 
 
 
 
 
 
 
 
 Miscellaneous 
 
 
 
 
 TOTAL GENERAL expenses 
 
 
 
 
 
 Departmental Trans-fers(Red) 
 
 
 
 
 Remarks : 
 
 Taxes 
 
 
 
 
 
 Insurance 
 
 
 
 
 
 Injuries and Qamaqes 
 
 
 
 
 
 Miscel laneous 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ttn-AL GENERAL. OPERATI.NQ EXPENSE 
 
 
 
 
 
 
 
 Form 26. Detailed Operating Report (right), 
 
INDEX 
 
 Accounts, classification of, 
 
 Construction, 26-28. 
 Operating, 28-36. 
 Assets, fixed, 11-17. 
 
 Classification of timber, 14. 
 Cutover lands, 16. 
 
 Life of plant depreciation, 13, 14, 52. 
 Purchase of real estate, 15. 
 Purchase of timber, 15. 
 Standing timber, 11-15, 54-57. 
 Stumpage, 12, 13, 50, 56. 
 Value of uncut lands, 17, 54, 55. 
 
 B 
 
 Balance sheet (monthly statement), 52. 
 
 Forms, 100-103. 
 Boarding-house, 45. 
 Bonds, timber, 11, 17, 18. 
 Books. (See "Records and Forms.") 
 
 Car record, 49. 
 
 Forms, 98, 99. 
 Cash book, 21. 
 
 Forms, 74, 75. 
 
 Memorandum, 39. 
 Charges, 
 
 Construction, 26-28. 
 
 Operating, 28-36. 
 Checks, 
 
 Pay-roll, 38. 
 
 Voucher, 20. 
 Classification of, 
 
 Construction charges, 26-28. 
 
 Operating charges, 28-36. 
 
 Timber, 14. 
 
 105 
 
io6 
 
 INDEX 
 
 Closing entries, 50-53. 
 
 Forms, 100-103. 
 Commissary, 45, 46. 
 Construction charges, 26-28. 
 Construction ledger, 22. 
 
 Forms, 76. 
 
 Cost price, 12-14, 58-62. 
 Cost, true, 61, 62. 
 Costs, logging aiid sawmill, 37-41. 
 Customers ledger, 22, 24. 
 
 Forms, 81. 
 Cutover lands, 16. 
 
 Debatable points in lumber accounting, 
 
 Interest, 56, 57. 
 
 Inventories, 57-62. 
 
 Taxes, 55-57. 
 
 Uncut lands, 54, 55. 
 
 Unearned increment, 54. 
 Definitions of technical terms, 63-70. 
 Delivery card, 48. 
 
 Forms, 96. 
 
 Depreciation, 13, 14, 52. 
 Distribution expenses, 35, 36. 
 Dry kiln expenses, 31, 32. 
 Dry shed tally card, 47, 48. 
 Forms, 95. 
 
 Expenses, 
 
 Construction, 26-28. 
 Operating, 28-36. 
 
 F 
 
 Fixed assets, 11-17. 
 Fixed price, 60. 
 
 Forms of lumber accounting records, 72-103. 
 Freight journal, 23, 24. 
 Forms, 80. 
 
 General expenses, 36. 
 General ledger, 19, 20. 
 
INDEX 
 
 General operating expenses, 35. 
 
 General records, 19-25. 
 
 Glossary of technical terms, 63-70. 
 
 H 
 
 Hospital, 45. 
 
 Interest, 56, 57. 
 Inventories, 51, 58-61. 
 
 Journal, 20. 
 
 Freight, 23, 24. 
 
 Forms, 80. 
 Sales, 22, 23. 
 
 Forms, 78, 79. 
 Voucher, 20, 21. 
 
 Forms, 72, 73. 
 
 Land ledger, 43, 44. 
 
 Forms, 92. 
 Lands, 
 
 Cutover, 16. 
 Timber, 11-17, 54, 55. 
 Uncut, 16, 17, 54, 55. 
 Lath mill expenses, 33, 34. 
 Ledger, 
 
 Construction, 22. 
 
 Forms, 76. 
 Customers, 22, 24. 
 
 Forms, 81. 
 General, 19, 20. 
 Land, 43, 44. 
 
 Forms, 92. 
 Log, 24. 
 
 Forms, 82. 
 McKaskey, 46. 
 Operating, 22. 
 
 Forms, 77. 
 Timber, 24, 25. 
 
 Forms, 83. 
 
io8 INDEX 
 
 Life of plant, 13, 14. 
 Loading record, 49. 
 
 Forms, 98, 99. 
 
 Logging and sawmill costs, 37-41. 
 Logging expenses, 28, 29. 
 Log ledger, 24. 
 
 Forms, 82. 
 Logs, 
 
 Report on, 39. 
 
 Forms, 86. 
 Scaling, 40. 
 
 Forms, 88. 
 Summary of, 39. 
 
 Forms, 87. 
 Lumber cut, record of, 40, 41. 
 
 Forms, 90. 
 
 Mark book, 40. 
 
 Mill cut, report of, 40. 
 
 Forms, 89. 
 Monthly statement, 52. 
 
 Forms, 100-103. 
 
 Operating charges, 28-36. 
 
 Administrative, 36. 
 
 Distribution, 35, 36. 
 
 Dry kilns, 31, 32. 
 
 General, 35. 
 
 Lath mill, 33, 34. 
 
 Logging, 28, 29. 
 
 Outside expenses, 44. 
 
 Planing mill, 32, 33. 
 
 Poles, 34, 35. 
 
 Pond, 29, 30. 
 
 Power, 32. 
 
 Sawmill, 30. 
 
 Selling expenses, 36. 
 
 Shingle mill, 34. 
 
 Yards, 31. 
 
 Operating ledger, 22. 
 Forms, 77. 
 
INDEX 109 
 
 Operating report, 52. 
 
 Forms, 102, 103. 
 Orders, 47. 
 
 Forms, 93. 
 Outside operations, 44. 
 
 Pay-roll, 38, 39. 
 
 Forms, 84, 85. 
 
 Checks, 38. 
 
 Tokens, 38, 39. 
 Piece tally sheet, 48. 
 
 Forms, 97. 
 Piling ticket, 41. 
 
 Forms, 91. 
 
 Planing mill expenses, 32, 33. 
 Poles, 12. 
 
 Expenses, 34, 35. 
 Pond expenses, 29, 30. 
 Power and light, 42, 43. 
 
 Charges, 32. 
 Price, 
 
 Cost, 12-14, 58-62. 
 
 Fixed, 60. 
 
 Selling, 59, 60. 
 
 True, 61, 62. 
 Public utilities, 42, 43. 
 Purchases, 
 
 Of real estate, 15. 
 
 Of timber, 15. 
 
 R 
 
 Railroads, 42. 
 
 Real estate, 15, 16, 43, 44. 
 
 Forms, 92. 
 Records and forms, 
 General, 19-25. 
 
 Cash book, 21. 
 
 Forms, 74, 75. 
 Construction ledger, 22. 
 
 Forms, 76. 
 
 Customers ledger, 22, 24. 
 Forms, 81. 
 
no 
 
 INDEX 
 
 Records and forms (Continued) 
 General (Continued) 
 
 Freight journal, 23, 24. 
 
 Forms, 80. 
 
 General ledger, 19, 20. 
 Journal, 20. 
 Log ledger, 24. 
 
 Forms, 82. 
 Operating ledger, 22. 
 
 Forms, 77. 
 Orders, 47. 
 
 Forms, 93. 
 Sales journal, 22, 23. 
 
 Forms, 78, 79. 
 Timber ledger, 24, 25. 
 
 Forms, 83. 
 Voucher journal, 20, 21. 
 
 Forms, 72, 73. 
 Logging and sawmill, 37-41. 
 
 Daily report of logs cut in woods, 39. 
 
 Forms, 86. 
 Daily record of lumber cut, 40, 41. 
 
 Forms, 90. 
 Daily scale of logs, 40. 
 
 Forms, 88. 
 Log summary, 39. 
 
 Forms, 87. 
 Mark book, 40. 
 Pay-roll, 38, 39. 
 
 Forms, 84. 85. 
 
 Checks, 38. 
 
 Tokens, 38, 39. 
 Piling ticket, 41. 
 
 Forms, 91. 
 Report of mill cut, 40. 
 
 Forms, 89. 
 Shipping, 47-49. 
 
 Car loading record, 49. 
 
 Forms, 98, 99. 
 Delivery card, 48. 
 
 Forms, 96. 
 Orders, 47. 
 
 Forms, 93. 
 
INDEX In 
 
 Records and forms (Continued) 
 Piece tally sheet, 48. 
 
 Forms, 97. 
 Tally cards, 47-49. 
 Forms, 94, 95. 
 Reports, 
 
 Daily, 71. 
 
 Of logs cut in woods, 39. 
 
 Forms, 86. 
 Of mill cut, 40. 
 Forms, 89. 
 Operating, 52. 
 
 Forms, 102, 103. 
 Reserve account, 52. 
 Retail yard, 71. 
 
 Sale of real estate, 43, 44. 
 
 Forms, 92. 
 Sales journal, 22, 23. 
 
 Forms, 78, 79. 
 Sawmill costs, 37-41. 
 Scaling logs, 40. 
 
 Forms, 88. 
 Selling expenses, 36. 
 Selling price, 59, 60. 
 Shingle mill expenses, 34. 
 Shipping department, 47-49. 
 Orders, 47. 
 
 Forms, 93. 
 Records, 47-49. 
 
 Car loading record, 49. 
 
 Forms, 98, 99. 
 Delivery card, 48. 
 
 Forms, 96. 
 Piece tally sheet, 48. 
 
 Forms, 97. 
 Tally cards, 47-49. 
 Forms, 94, 95. 
 Shipping expenses, 35, 36. 
 Sinking fund, 18. 
 Stable charges, 45. 
 Standing timber, 11-15, 54-57. 
 
112 INDEX 
 
 Statements, 52. 
 
 Forms, 100-103. 
 Stumpage, 12, 13, 50, 56. 
 Summary, log, 39. 
 
 Forms, 87. 
 Surplus account, 16, 53-55. 
 
 Tally cards, 47-49. 
 
 Forms, 94, 95. 
 Taxes, 56, 57. 
 
 Technical terms used in lumber business, 63-70. 
 Timber, 
 
 Bonds, 17, 18. 
 
 Classification of, 12, 14. 
 
 Land, 11-17, 54, 55. 
 
 Ledger, 24, 25. 
 Forms, 83. 
 
 Prices, 14. 
 
 Purchases of, 15. 
 
 Rights, 11. 
 
 Standing, 11-15, 54-57. 
 Transportation charges, 29. 
 Trial balances, 50. 
 True cost, 61, 62. 
 
 Uncut lands, 16, 17, 54, 55. 
 
 Unearned increment, disposition of, 54. 
 
 Voucher journal, 20, 21. 
 
 Forms, 72, 73. 
 Vouchers, 20, 21. 
 
 W 
 
 Warehouse, 46. 
 Water department, 43. 
 
 Yard expenses, 31, 
 

 LD 21-100m-8,'84 
 
UNIVERSITY OF CALIFORNIA LIBRARY