Яндекс.Метрика
qr-код - Как-то так стрелка - Как-то так
Ведущий экономист + ... пиктограмма - Как-то Так THIS     АКТУАЛЬНЫЕ ВЕЩИ - СВОИМИ СЛОВАМИ
Персональная помощь в экономическом планировании и WEB
+ WEB = разработка + ремонт + поддержка !

Accounting for the cost of production: simple bookkeeping on your fingers

Accounting for the cost of production: simple bookkeeping on your fingers

The essence and principle of cost accounting

The topic of accounting cost accounting is quite complicated, due to the large number of accounts/subaccounts involved in correspondence during the formation cost, legislative nuances, features of accounting policies.

For easier understanding, let's try to disassemble the basic algorithm of this whole process using only basic synthetic accounts, accountingairplanes", on the same diagram and on a simple example.

As you know, the formula of any commodity production: Money - Commodity - Money.

In order to produce and sell products, it is necessary to provide the entire economic process with finance. In other words, to buy or invest in certain assets (non-current and current), and then get a product from them.

That is, at the beginning:

  • there is money
  • they are converted (we pay for something) into an initial asset (raw materials, raw materials, etc.)
  • these assets, in turn, are distributed (each to its own accounting account), and then from there they are written off into a product, where, as they accumulate, the cost of production is formed (Debit account 20)
  • this product is for sale, and the money is refunded

More or less of them will be credited to the settlement account (account 51), it will depend on efficiency of the business – profits, scale effect, break-even levels, etc.

The main economic elements (current assets) involved in cost formation are:

  • raw materials/materials
  • energy resources/fuel
  • labor (salary with deductions)
  • depreciation
  • taxes
  • other services

Let's analyze all directions accounting for business transactions related to the purchase and write-off of these economic elements, on an example of the activity of a manufacturing company.

Let's see how we will accumulate the Debit costs of the synthetic account 20 ( used to generalize production costs), where the entire production cost of products is accumulated before it goes to account 43 (finished products transferred to the warehouse and awaiting its implementation).

The starting point will be For account 51 (the balance of money on the company's current account, for example, 100 million RUB) from which money will be debited to finance working capital, at the expense of which the cost of production will be formed.

cost accounting products

1 - depreciation write-off to cost

Let's start with depreciation, because it is due to its primary source that the production process itself is ensured.

That isE., in order to start producing products, it is necessary to purchase equipment.

The accountant forms a payment order to his bank and makes a payment to the supplier (prepayment of RUB 50 million):

D sch.60 - K sch.51

Accounts receivable were formed (Debit account 60) and at the same time money was debited from the company's current account (Account 51).

The supplier supplies the equipment to the company (the debit balance of account 07 increases "Equipment for installation") and at the same time, the supplier's accounts receivable to the company are closed (account 60 is credited):

Settlements with suppliers and contractors:

D sch.07 - K sch.60

After that, the equipment from the warehouse is transferred to the unfinished construction:

D sch.08 - K sch.07

An unfinished construction object was formed by Debit of account 08 "Investment in long-term assets" (the asset changed from one form to another).

After this object is put into operation by the act, it will be transferred from unfinished construction (account 08) to fixed assets (account01):

For sch.01 – To sch.08

Now, during its operation and in accordance with the depreciation policy of the company, the cost of this object (equipment) will be written off in parts (every month) to the cost of main production:

D sch. 20 – k. sch.01

And the accumulated depreciation will be accounted for in the auxiliary non-balance sheet account 02.

All the above-described depreciation write-off operations (correspondence of accounting accounts) via "aircraft":

cost accounting products - depreciation write-off

As a result:

There are 50 million RUB left on the company's current account (account 51).

On account 01, after writing off part of the cost of equipment in depreciation, 40 million RUB remained.

The account 20 has already accumulated costs of 10 million RUB

2 - write-off of raw materials to cost

In addition to equipment, in order to produce products, current assets (factors of production) are also needed, including raw materials and supplies.

The accountant forms a payment order to his bank and pays the supplier for raw materials (prepayment of RUB 15 million):

For sch.60 – To sch.51

Again, as with the equipment, accounts receivable Debit account 60 were formed and at the same time money was debited from the company's current account Credit account 51.

From the supplier, raw materials/materials are delivered to the company's material warehouse (debited account 10) , and the supplier's accounts receivable is already being closed, so to speak, does not owe anything, has fulfilled its obligations (credited to account 60):

For sch.10 – To sch.60

Further, as soon as production is necessary, the storekeeper writes off the raw materials to the main production, for production:

For sch.20 To sch.10

All the above-described operations for writing off raw materials (correspondence of accounting accounts) through "aircraft":

cost accounting - write-off of raw materials

As a result:

There are 35 million RUB left on the company's current account (account 51).

On account 10, after writing off part of the raw materials/materials for production, 40 million RUB remained.

Expenses of RUB 25 million have already been accumulated on account 20.

3 - write-off of energy resources to cost

In addition to raw materials, it is necessary to provide electricity production.

The accountant forms a payment order to his bank and makes a payment to the electricity supplier (prepayment of RUB 7 million):

For sch.60 – To sch.51

As you understand, there is no warehouse for electricity, as for raw materials/materials and equipment, so all accounting for write-off/consumption of electricity in production will be conducted through accounts 60 and 20.

At the end of the month, upon the fact of the electricity consumed by the production, the accountant will simply make the wiring:

For sch. 20 – To sch. 60

If the amount of electricity write-off at the end of the month does not coincide with the actual payment for it (according to account 51), then account 60 will be adjusted by the amount of either Credit or Debit (account 60 is active-passive). In case of overspending by the company, it will be necessary to pay extra to the supplier, and in case of overpayment, it will be offset next month (in most cases this is done).

All the above-described operations for writing off energy resources (correspondence of accounting accounts) through "airplanes":

cost accounting products - write-off of energy resources

As a result:

There are 28 million RUB left on the company's current account (account 51).

32 million RUB has already been accumulated on account 20.

4 - deduction of taxes to cost

In the course of carrying out its activities, the company also needs to pay a number of taxes included in the cost (real estate tax, environmental, transport, etc.). Therefore, there is also a need to finance this cost item.

The accountant forms a payment order to his bank and makes a payment to the settlement account of budgetary or extra-budgetary funds (RUB 4 million):

For sch.68 – To sch.51

The balance on the Debit account was formed. 68 "Calculations on taxes and fees» and at the same time, money was debited from the company's current account To account 51.

Now the accountant will simply close this balance at the end of the month by writing it off (credited to account 68) to the cost price (in account 20):

For sch.20 – To sch.68

All the above described tax write-off operations (correspondence of accounting accounts) via "planes":

cost accounting products - tax write-off

As a result:

There are 24 million RUB left on the company's current account (account 51).

36 million RUB has already been accumulated on account 20.

5 - write-off of the cost of services to the cost

Well, how about without services in production activities. This includes repairs, cleaning, logistics, transport, banking, advertising, etc.

The accountant forms a payment order to his bank and makes a payment to the supplier of the necessary service (prepayment of RUB 3 million):

All the same standard wiring:

For sch.60 – To sch.51

A balance was formed on the Debit of account 60 "Settlements with suppliers and contractors" and at the same time money was debited from the company's current account to account 51.

For sch.20 – To sch.60

Next, the balance of account 60 is closed by writing off this amount to the cost of production.

All the above described operations for writing off services (correspondence of accounting accounts) via "aircraft":

cost accounting products - write-off of services

As a result:

There are 21 million RUB left on the company's current account (account 51).

39 million RUB has already been accumulated on account 20.

6 - write-off of wages/wages to cost

The main of the main factors of production is labor, which also contributes to the production of the company's products.

Wages are accrued at the end of the month (RUB 8 million) and the following transaction is made:

D sch.20 – k.sch.70

This indicates that the amount of accrued wages was written off to cost (debit account 20) and at the same time a balance of 70 was formed, i.e. we have accounts payable (account 70 in this case is a liability, as well as a balance account).

Writing off wages as expenses does not mean that they were paid into the hands of employees.

To pay for work, the accountant forms a payment order to his bank and transfers the accrued wages from the current account to the personal accounts of employees.

For sch.70 – To sch.51

As a result, the money was withdrawn from the current account (account 51 is credited), and the accounts payable on the loan were closed (account 70 is debited).

All the above-described payroll write-off operations (correspondence of accounting accounts) via "planes":

cost accounting products - payroll write-off

As a result:

There are 13 million RUB left on the company's current account (account 51).

47 million RUB has already been accumulated on account 20.

As a result of these conducted business operations (turnover) of the company, account 20 accumulated costs for all economic elements included in the cost structure (material, labor, depreciation, taxes, services).

Balances on the main active synthetic accounts were set:

dd.51 = 13 millionRUB

Length 10 = 0 millionRUB

Length 60 = 0 millionRUB

Length 20 = 47 millionRUB

D.01= 40 millionRUB

I.e. checksum balance sheet, from which the company began its activities, converges: liabilities = 100 million. RUB (own funds), assets (debit balances of active accounts) = 100 million RUB.

Further, as the finished product is released, the cost of production is written off into the product:

For sch. 43 – To sch. 20

Well, then the sale of products from the commodity hoard through the account 90.

If at the end of the month the cost of debit account 20 is not all written off into finished products (debit account 43), then this balance (D account 20) will indicate the presence of the cost of completed production at the beginning of the next month.

This is the principle by which accounting of the cost of production is carried out in any organization.

Of course, there are many nuances and subtleties associated with the accounting policy of any company, but the approach itself, which corresponds to generally accepted accounting standards, is exactly that.

Accounting for the cost of production: simple bookkeeping on your fingers – Something like that !

Подписывайтесь на мой телеграмм канал - Мои заметки - ЭКОНОМИКА +

Если у вас есть какая-либо потребность в решении определённой задачи, связанной с созданием, запуском, ремонтом и поддержкой своего интернет-проекта (сайта) в сети, или же экономическим анализом и бизнес-планированием коммерческой деятельности   telegram или форма обратной связи

Administrator
182
0
Name
E-mail
Rating
Review

Currency Converter
RUB RUB-icon
USD USD-icon
EUR EUR-icon
CNY CNY-icon
BYN BYN-icon
UAH UAH-icon
KZT KZT-icon
ЗАМЕТКИ ЭКОНОМИСТА
SHORT- what is it about
ECONOMIC LITERACY
  Simple online solutions to problems of economics and finance  
I Want To Know Everything. Useful Tips