This method provides three records, each closely related to the others. In the general ledger, there is a _hardware purchase_ account; in the storeroom, a detailed record of the hardware stock; in the cost department, a record of all hardware issued to the factory. When the cost department record is brought into the _hardware purchase_ account, by a credit through the journal, the balance of this account should show the value of the hardware stock and should agree with the records of the stores department. The compilation of supplies costs should be made along similar lines, and the same care should be used in the classifications. Fuel purchases, for instance, should be kept in a separate account, while general factory supplies──as oil, belting, waste, etc.──may be kept in one account or subdivided, depending on the size and nature of the business. =42. Material Cost Reports.= The material records of the cost department relating to totals issued should be made in the form of reports, as they will be required in the general accounting office. These reports need not show order numbers, but should show whether used on production, construction, or repair work. The supplies record should show by what department the supplies are used. Fig. 9 shows a form for a report of material costs. In the heading is given the class of material, being the caption of the purchase account in the general ledger, and the month for which the report is made. The body of the report provides for a daily record of amounts charged to production, repairs, and construction, with an extra column for any special classification that may be needed at any time. This form is in duplicate, the original being printed on light weight paper to insure perfect carbon copies. A loose─leaf form is most satisfactory because both copies, with carbon paper between, can be kept in a binder and the entries made each day. [Illustration: Fig. 9. Monthly Statement of Material Issued] Duplicate sheets are used for each material classification. Each day, the amounts are extended on all requisitions. The requisitions are then sorted according to material classifications, those applying to production, repair, and construction orders being kept separate. Those of each subdivision are footed, preferably on an adding machine, and the total is then entered on the report. For sorting requisitions, a box or rack, with compartments for the divisions in each class, is most convenient. Such a rack is shown in Fig. 10. Reports of supplies issued to the factory are handled in the same manner as materials. The form used for this purpose and shown in Fig. 11, is similar to the material report form, the only difference being that amounts are distributed to the several departments.