Standard cost finding practice for steel foundries

Bibliographic data

Monograph

Identifikator:: 176071013X

URN:: urn:nbn:de:zbw-retromon-140159

Document type:: Monograph

Title:: Standard cost finding practice for steel foundries

Place of publication:: [Pittsburgh]

Publisher:: Steel Founders' Society of America

Year of publication:: 1927

Scope:: 26 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Product of metals charged into furnace

Collection:: Economics Books

leducting from this sum the weight of “Own Scrap” on hand at the beginning of the nonth. “Own Scrap” means steel poured from the furnace that is later recovered as scrap from the manufacture of castings, that is, it is all scrap which is returned to the fur- races for remelting. Melting and Foundry Loss: This item represents all metal that is lost and cannot be recovered, such as oxidation loss dur- 'ng melting, oxidation loss during annealing, fins and spills lost in heap sand, metal re- noved and lost as dust in grinding castings, oxidation loss during the removal of heads and gates by gas cutting, and other metal unaccounted for. This melting and foundry loss can se determined periodically from calculations involving inventories of “own scrap,” the veight of the castings scrapped during the period, the weight of the good castings pro- duced during the period, and the total amount of all metals charged into the furnaces dur- ‘ng the period. It is usually from 7 percent to 10 percent of the metal charged for foun- Iries operating open hearth furnaces or electric furnaces, and from 18 percent to 22 per- ~ent for foundries operating converters. ['otal Charge: The total charge is the total weight of the metals charged into the furnaces during the month. This is obtained from the heat reports and it represents actual weights of metals used. ACCOUNTING FOR MATERIALS, SUPPLIES AND OTHER CHARGES Data for the various items in the Standard Classification of Cost Accounts pertaining to the cost of materials, supplies, and other charges, are obtained from heat reports, monthly inventories, stores’ requisi- ions, voucher records, and reserve accounts in the cost ledger. It is important that these charges be cor- rectly classified and applied to the proper cost accounts. ACCOUNTING FOR LABOR Labor is of the greatest importance to the foundrymen because it is most potent in contributing oward the success or failure in making castings. It is one of the items most susceptible to manipulation and ‘conomy. The method of collecting labor data for the cost accounting records is very important, unless it is per- ‘ormed with accuracy and ease the results are unreliable and misleading. Since the costs of individual cast- ngs are dependent largely on correct lahor costs. it is evident that incorrect labor data mav lead to disastrous ost finding. .-. The labor data for the various accounts given in the Standard Classification of Cost Accounts, are obtained from the records used for distributing the time or service records for all employes to the different iccounts in each department, that is, the classification of labor according to its nature. Data for employes -eceiving salaries are obtained from the salarv roll DEPRECIATION . Depreciation of the plant and equipment must be charged into current costs of production as it is an tem of expense. The need of charging depreciation to current costs arises from the fact that working assets -radually give out cr become obsolete, or in other words, they are used up in production, and the cost of this 1sage or consumption of capital is part of the cost of the product being manufactured. The test for depreciation is how long the property will function, how many units it will produce before it is scrapped or becomes obsolete, and what will be its cost of replacement. When this question is answered, ‘hen the amount of depreciation—which is the actual cost of the property less any salvage—to be charged ‘0, current costs can be determined. This charge to costs for depreciation cannot be abandoned simply because profits are non-existent. for depreciation accrues whether or not there is a dollar of profit.

Access restriction

Copyright

fullscreen: Standard cost finding practice for steel foundries

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation