The cost should always be considered in the context of the production process period.
To understand what is the fundamental difference between the cost of production or output of products from the cost of its implementation, a simple example.
Our company begins to produce products, for example, from January 1.
By the 30th of the same month, we already have accumulated costs for the volume of output.
In a month we spent a total of 5000 rubles and produced 100 units of products. The entire cost price is concentrated in this volume of 100 units, i.e. the costs for 1 unit of production amounted to 50 rubles (5000 rubles/ 100 units).
Products from production do not immediately "turn" into revenue "into money on the settlement account. It is moved to the warehouse of finished products at the cost at which it was produced in the reporting period (January). In our case, 100 units. = 5000 rubles..
Then it is already shipped from the warehouse to the consumer. But this can also happen indirectly in the same month in which it was produced (in January).
Let's say we sold only part of the products in February - 70 units.. The cost of this volume, which we realized, amounted to 3,500 rubles. (70 units x 50 rubles) ., i.e. sold products in the costs of the last month's output, and not the current one.
The production process does not stop and in February we also produce products.
In February, we released 120 units. and we spent 7000 rubles on the volume. Further, these products also get to the warehouse, where they are waiting for their sale.
Taking into account the fact that we still have remnants of products released in January of 30 units, with the costs of that period of 150 rubles. (30 units. x 50 rubles.), plus what came from production in February 120 units., with the cost of February 7000 rubles., on March 1, we have a total remaining stock of finished products 150 units. (30 units. + 120 units) and in the cost it is 7150 rubles. (150 rubles. + 7000 rubles.).
That is, the sale of products in subsequent periods will be carried out based on the cost of the products registered in the warehouse on March 1 - 1 unit 47.7 rubles (7150 rubles/150 units).
Based on this logic - "it has come / gone" and the whole system of accounting for actual costs is being built, dividing them into:
- cost of manufactured (released) products
- cost of products sold
The cost of products sold is calculated based on the cost of production and its movement from period to period, taking into account the cost of the balances, the costs of which were formed even in previous periods.
Regarding our example.
The cost of production for January was 5000 rubles (100 units), and the cost of sales for the same period was 0 rubles (0 units).
The cost in the remains of finished products on February 1 = 5000 rubles (100 units).
The cost of production for February was 7000 rubles (120 units), and the cost of sales for the same period was 3500 rubles. (70 units).
The cost in the remains of finished products on March 1 = 7150 rubles (150 units).
A logical question ! - And if we sold the products in the same month in which it was produced, but in fact its cost price has not yet been calculated?
In this case, the costs of such types of products are taken into account at the planned cost, and at the end of the month, an adjustment is simply made to the actual costs with the distribution of deviations to the remaining products.
And so on, and according to this principle, the actual cost price is calculated relative to the time dynamics, the production process and the sale of products.
In the conditions of multi-nomenclature activity, the distribution of costs by product types is also done.
Of course, here we did not mention the work in progress (another topic), which also takes place in the accounting system. I.e., products from production, in addition to being transferred directly to the warehouse, can also be delayed in the shop itself, as unfinished (on the basis of the incompleteness of its production cycle - not yet signs of marketable appearance).
In addition, in accounting, costs are accumulated and allocated to accounts for the correct and correct output of the result of activities for the reporting period, which is determined by the difference between Revenue and the cost of sales of products, and not the Cost of production (output) of products.
If, within the framework of synthetic accounting, to describe our situation from an example on «airplanes», then it would, in general, look something like this.
Production cost formation:
D-t sch. 20 – K-t sch. 10 (write-off of materials into costs)
D-t sch. 20 – K-t sch. 60 (write-off of energy into costs)
D-t sch. 20 – K-t sch. 70 (write-off of labor into costs)
Formation of the cost price transferred to the warehouse:
D-t sch.43 – K-t sch. 20 (finished products in the amount of actual costs are credited)
Shipment or sale of products:
D-t 62 K-t 90.1 (revenue received)
D-t 90.2 K-t 43 (the cost price is written off) – this, by the way, is the cost of sales
Output of the result:
sch.99 = ;K-t sch. 90.1 – D-t sch. 90.2
If «+» (i.e. profit), then the balance on account 99 is credit, if «-» (i.e. loss), then the balance on account 99 is debit.
Profit/loss (account balance 99):
In case of profit - D-t sch. 90.9 K-t sch. 99
In case of loss - K-t sch. 90.9 D-t sch. 99
Closing account 99 and attributing the result to balance sheet (account 84):
D-t sch. 99 K-t sch. 84 —the written-off profit is taken into account.
D-t sch.84 K-t sch.99 — the loss incurred is taken into account.
Based on such requirements of the accounting system, there is a need to divide the cost into production and realizable.
Cost of production and sales:the difference between one from the other and what is the essence of accounting - Somehow So!
