§ 149.24. Separating expenditures for raw product into controlled and noncontrolled amounts.
(a) From the milk dealer’s monthly report, the product and butterfat pounds sold or utilized shall be determined for each producer payment category, as follows:
(1) Controlled, Class I
(2) Controlled, Class II
(3) Noncontrolled, Class I
(4) Noncontrolled, Class II
(5) Noncontrolled, Class III
(6) Noncontrolled, Class IV
(b) The value of each category, using the applicable Federal or State prices adjusted for zone and butterfat differentials, shall be determined.
(c) The pounds and dollar values for controlled and noncontrolled shall be totalled.
(d) The difference between the total dollars accounted for in subsection (c) and the total paid for the milk, including payments to settlement and assessment funds shall be determined. This difference shall consist of market administration fees, shrinkage, plant loss and premiums.
(e) The dollar difference specified in subsection (d) shall be divided between controlled and noncontrolled, in the same proportion as the controlled and noncontrolled pounds totalled in subsection (c).
(f) Add or subtract the differences separated in subsection (e) to the two dollar figures computed in subsection (c). The total of the controlled and noncontrolled dollar figures shall then equal the total payment for milk for the month.
(g) If bulk product is purchased from other sources in addition to producers, the payments to both shall be totalled and divided between controlled and noncontrolled, using the steps set forth in subsections (a)—(f). The amounts of the total controlled and total noncontrolled shall then be divided between purchases and purchases from others, in the same proportion as the totals paid to producers and to others. The resultant four figures shall next be charged to the four accounts specified in § 149.42(c)(2)—(4) (relating to income and cost of sales accounts), with a credit to “Total Purchases of Milk,” specified in § 149.42(c)(1).
(h) At the end of an accounting period, either calendar or as specified by the Board for cross-section purposes, the summarization of the monthly total figures may not equal the figure from the adjusted trial balance because of period beginning and ending inventory or other adjustments. This difference, plus or minus, shall be divided between controlled and noncontrolled in the same proportion as the total controlled and noncontrolled pounds sold in the entire period.
(i) A dealer operating a partially Federally regulated plant paying marketing administration fees and payments to settlement funds for fluid milk products delivered to a Federal order area should assign all such payments to controlled cost of sales except for deliveries to locations on which the Board does not establish prices, such as out-of-State locations and Federally owned land.
(j) If a dealer that produces both fluid and manufactured products purchases items, such as cream and powder that can be readily identified as raw product for the manufactured items, the cost of these items may be excluded from the computations specified in subsections (a)—(h) and assigned directly to noncontrolled cost of sales accounts.
Authority The provisions of this § 149.24 amended under sections 608 and 704 of the Milk Marketing Law (31 P. S. § § 700j-608 and 700j-704); and section 5 of the Milk Producers’ and Cooperative Security Funds Act (31 P. S. § 625.5).
Source The provisions of this § 149.24 amended September 24, 1999, effective September 25, 1999, 29 Pa.B. 4952. Immediately preceding text appears at serial pages (237872) to (237873).
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