Diagram of manufacturing accounts J. Slater Lewis

scheme how incorporate labour costs factory accounts garcke , fells (1887/89).



diagram of manufacturing accounts, j.s. lewis 1896.



systems of controlling accounts, church 1910.



special order system (fragments). nicholson. 1913.



relation of stores records commercial records, moxey 1913/19.

slater lewis paid special attention establishment charges, or overhead element, of manufacturing costs, , advocated integrating of costs financial accounts. garcke , fells (1887/89) had made first step here proposing system incorporate material costs , labour costs double-entry bookkeeping system. slater lewis focussed on next step, , developed method practically use ledger accounts distributing overhead work in process. in years come, become standard in engineering factories. in chapter xxiii on establishment charges slater lewis explained principles in paragraph on allocation of establishment expenditure. opens:

for mere purposes of commercial book-keeping, matters, indeed, little in way general , shop establishment charges dealt with, long paid out of profits made on work, say, matters little whether appear in books chargeable general revenue, or allocated several items of work in progress in shops. apart mere book-keeping, , meet requirements of management estimating, controlling efficiency of production , comparing, period period, relative economy , efficiency of shop administration, absolutely necessary keep accounts of prime cost (meaning thereby actual expenditure in labour , material directly incurred in production of manufactured goods) entirely separate establishment charges (shop , general), naked truth cost of operations have taken place in shops shall plainly appear on face of accounts. comparison of costs of machines produced @ intervals of years rendered possible.

in diagram of manufacturing accounts, slater lewis explained how scheme of production , cost control unfolded in logical flow. diagram based on scheme, pictured how incorporate labour costs factory accounts, presented garcke , fells in 1887/89 (see above). urwick & brech (1946) more explained:

as scheme of production , cost control unfolded in logical flow, following sequence customer s enquiry take transformed order, job ticket, material requisition, , on, reaches general accountancy phase , opens processes of book-keeping.

to deal these in simplest manner, slater lewis added illustrative appendix of thirty pages, containing transactions set out in specimen sheet form. , perhaps in connection significance of scheme revealed. whole system interlocking unity. closely related various procedures , documents able portray them in single flow chart, undoubtedly first of kind in british industry. 2 remarkable diagrams presented show feature , make continuous study easier. supplied folded sheets slipped cover of book. how precisely , illustrate teaching, lewis indicates himself note in heavy type offering on application unfolded copies of diagrams framing , display.

as diemer (1904) explained in diagram of manufacturing accounts, slater lewis made use of chart method of circles , arrows employed garcke , fells, in illustrating connection between accounts , forms illustrated.

a decennium earlier garcke , fells had developed system of factory accounting, , pictured elements in 4 complementary flow diagrams (only first of 4 diagrams pictured here). in slater lewis diagram of manufacturing accounts these 4 diagrams integrated picture system of manufacturing accounts 1 whole. decennium later alexander hamilton church (1908/10) further develop system introducing concept of production factors, , picturing principles of organization production factors (see image) around organisation. using concept of production factors church able simplify system of manufacturing accounts systems of controlling accounts (see image).

nicholson & rohrbach (1913) in cost accounting differentiated 1 method 4 different:

in same year nicholson & rohrbach published work, in 1913/19, edward p. moxey published influential textbook on accountancy, in pictured relation of stores records commercial records (see image).

in 1960 accounting principles braden , allyn described , pictured cost-flow principle:

as direct material passes storeroom factory conversion finished products , storeroom storage until sold, costs being gathered in totals , per unit each stage of productive process. each movement in factory operation accounted @ time occurs. cost-flow principle. assisting in carrying out of principle perpetual inventory method of accounting inventories. in operation of method of handling inventory, record made of issue of direct , indirect materials storeroom, record of receipt when purchased. continuous accounting flow of materials @ time of occurrence essential accounting costs.

in accompanying diagram illustrates flow of 3 sources of cost through factory (work in process), storeroom (finished goods), , hands of customers (cost of sales), appear in these general ledger control accounts. further explained of product through plant , corresponding flow of costs through accounts follows 1 of 2 different systems. 1 system called job order system; other system process cost system.