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A large difference always exists in the cup-
type soda Vending Machines and the Fountain
columns; however, this is because all entries have
been posted at cost price except for the entries for
Sales that are posted at a marked-up price (the
cash that was actually received). The value of
Sales, then, is the sum of the cost value of the
items sold plus the profit that has been received.
The large difference, therefore, is actually gross
profit. Since it is a forced figure, overages and
shortages cannot be strictly accounted for.
However, gross profit should be about 60 percent
of the sales figure for Vending Machines.
Generally, the gross profit for the fountain should
be about 30 to 40 percent, depending on the size
of the individual servings. Large deviations from
these percentages should be investigated.
If clothing items are sold in a separate retail
outlet, a separate column on the Financial Con-
trol Record should show no difference in the
Receipt and Expenditures subtotals since there is
a standard price and no markup is involved.
However, small differences may appear for
various common reasons.
The Other Cost Material column, which is
used only in a combined operation, should also
have no difference in its subtotals since no sales
are involved. Material is received, expended, and
inventoried at cost price. A difference of a few
cents might be the result of rounding off cost
prices of material upon receipt or receipt of stock
at a new price that was used for expenditures of
old and new stock alike. Any large financial
difference should be substantiated by a difference
you find when you are closing out the stock
records for cost of operation items. For example,
if the stock record for laundry soap was short 50
pounds and the cost price is 20¢ per pound, there
should be a $10 shortage in the Other Cost
Material column. Likely sources of error in this
column are the improper pricing of breakouts and
errors in posting.
The total of the Cost of Operation column is
the value of all material broken out as a cost of
operation and used in the laundry or barbershop.
This value also includes vending machine repair
parts.
Once you have examined the subtotals and
totals, you should check the recordskeeper’s
recaps of each column. You will need this infor-
mation for closing out the remaining records. You
will also need this information to evaluate the suc-
cess of the store operation and the accuracy of
the store operator in accounting for the stocks in
that person’s custody.
The first recap is for the retail store. The
difference should have been entered and identified
as an overage or shortage, as shown in figure 7-2.
The difference as a percentage of sales should
have been entered in parentheses. All differences,
regardless of size, should be reported on the
reverse side of the NAVCOMPT 153.
The second recap provides information about
the vending machine operation. The Cost of Sales
figure is the difference between the gross profit
(subtotal difference) and the vending machine
(VM) sales. The gross profit figure is also entered
in the recap along with the percentage of gross
profit to sales. Finally, the Cost of Operation
figure, which was obtained by adding all the VM
entries in the Cost of Operation column of the
NAVSUP 235, should have been entered.
In a combined operation, the Other Cost
Material (OCM) column is recapped. All that is
required is the value of the Cost of Operation
column less the VM entries and any difference
existing in the OCM column.
In a separate operation, there is no Other Cost
Material recap that lists the value Cost of
Operation—Material from the Cost of Operation
column. Recaps should also be included for
clothing items and the fountain operation,
whenever applicable. An example of a separate
operation closeout of a Ship’s Store Afloat Finan-
cial Control Record is shown in figure 7-2.
Journal of Receipts
Closing out the NAVSUP 977 involves
nothing more than totaling the record. All six
columns of the record should be totaled and two
recaps of receipts should be prepared. See figure
7-3. For the first recap, the totals of the three
ship’s store columns should be added as well as
the totals for the three clothing columns. You will
use the first recap in closing out the Journal of
Expenditures. For the second recap, the totals of
each of the three types of receipts for both ship’s
store and clothing should be added. You will use
the second recap in preparing the financial
statements. See figure 7-3.
Journal of Expenditures
Many expenditures have been posted to the
Journal of Expenditures (NAVSUP 978)
throughout the accounting period. Remember, all
entries are made at cost price. These include
transfers, surveys, markdowns (below cost), and
some issues. Other expenditures, however, have
7-10
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