Reflected the cost of finished products. The formula for calculating the cost of production

In the previous article, we analyzed what the cost of production is made up of and found out that the total cost includes production costs. finished products and for its subsequent implementation. In addition, we briefly got acquainted with the concept of product costing. In this article, we will consider in detail how the calculation of the cost of production and accounting for production costs takes place. At the initial stage of the formation of the cost of finished products, it is necessary to take into account all the associated costs that have arisen in the relevant accounts accounting. Direct costs of the main production are reflected in the debit of account 20, auxiliary production- on the debit of account 23.

Find the actual cost of finished products

Accounting for production costs and calculating the cost of finished products are carried out by various methods and methods, the use of which depends on the type of production, the presence of work in progress, the characteristics of products, the quantity of products produced, etc. The costing method involves a certain system of accounting for production costs, which determines the actual cost of everything output and unit of output.

Attention

The main methods of cost accounting are order-by-order and process-by-process methods. The remaining methods, as a rule, are varieties of the named models.

In those industries where a unit of production has certain characteristic properties and is easily identified, the order method is used.

Important

Cost summation method The essence of the method is as follows: for each separate species products, the balance of work in progress at the beginning of the month is determined, which is added to the monthly amount of actual production costs, losses from marriage and the balance of work in progress at the end of the month are subtracted from the amount received. The resulting value will be the actual production cost particular type of finished product.

The formula for calculating the cost of production by the summation of costs: Fact.seb. = Unscheduled start month + expenses for the month - losses from marriage - unfinished production end of the month. The unit cost can then be calculated by dividing the actual cost by the number of units.
Accounting entries The resulting cost is deducted from the credit account. 20 to debit account 43 or 40.

Accounting for work in progress and finished products

General production and general business expenses are distributed among certain types of products, works and services. The basis for the distribution of these costs can be: wage production workers, direct costs, etc.

General business expenses can also be written off by the total amount of credit 26 to debit 20, if the actual cost of each type of product is not determined by the enterprise. General production costs are distributed similarly.

The expenses recorded on accounts 25 and 26 are written off at the end of the reporting period to debit 20 from credit 25, 26. In accordance with PBU 10/99, organizations can adopt the write-off procedure in the accounting policy general expenses directly to debit 90 from credit 26.

Losses from marriage are also written off from credit 28 to debit 20.

How to calculate the cost of finished products?

With the process-by-process method, accounting for production costs is carried out for individual processes in the manufacture of products as an integral part of the entire production process. This method is used when the production of a product consists of a sequence of continuous or repetitive operations or processes, and the cost of production is determined at each stage of the production, operation or process.
Currently, such methods of calculating the cost of finished products are used, such as the standard method of costing, the method of summing up costs, the method of direct calculation, the combined method of costing, etc.

Calculation and calculation of the cost of production

Reflected the repayment of the cost of special equipment ( special clothing) during the useful life 20, 23, 25, 26 10-11 7. Deductions made for the formation of reserves upcoming expenses 20, 23, 25, 26 8.

Decommissioned travel expenses 20, 23, 26 9. Accepted invoices for consumed electricity, gas, water, etc.: - VAT included 20, 23, 25, 26 19 60 60 10. Semi-finished products of own production released into production 10.4.

Info

Evaluation and accounting of inventories of work in progress Continued table. 10.1 Operation content Corresponding accounts Debit Credit 11. Accrued rent: - VAT included 20, 23, 25, 26 19 60 60 12.

Products (works, services) of auxiliary industries written off to the main production 13. Part written off production costs future periods relating to the reporting period 20, 23, 25, 26 14.

Determination of the actual cost of finished products

The value of the cost directly depends on the volume and quality of products, as well as on the level rational use raw materials, equipment, materials and working hours of employees. The cost indicator is the base for determining the price of the manufactured goods.

In the article we will talk about the specifics of calculating the cost indicator, as well as using examples, we will consider the methodology for determining the cost of production. Content

1 The concept of cost
2 Types of production costs
3 Calculation of the cost of production using examples
- 3.1 Calculation of production cost
- 3.2 Calculation of cost by allocating costs

The concept of cost Under the cost understand the current costs incurred by the organization for the production and sale of products.

Determination of the actual cost of consumable materials

The main scope of the custom method is individual and small-scale production, as well as auxiliary production. In other cases, the process-by-process method is more preferable. The main area of application of the process-by-process method is mass production with the sequential processing of raw materials into a finished product. With the order-by-order method, accounting for production costs is carried out for individual production orders. At the same time, direct expenses reflected in the debit of account 20 “Main production” in correspondence with the credit of the accounts of accounting for settlements with personnel for remuneration, inventories etc. are taken into account in the cost of specific orders. To do this, each of the orders is assigned a code (number).
These ciphers are affixed in the primary documents, which allows you to group costs directly by order. For each order, a calculation card is opened.

How to determine the actual production cost

Write-off of indirect general business expenses can be carried out in the following way:

by distribution between individual types of products (calculation objects);
by writing off expenses in full at the end of the month.

If the organization distributes general business costs between types of products, then the same methods are used for write-offs as for general production costs. If the organization writes off all accumulated costs in full, then they can be attributed to other expenses, posting D90 / 2 K26.

Now, to calculate the cost, it remains only to take into account the costs associated with correcting the marriage; for this, the losses from marriage accumulated on the debit of account 28 are written off to the debit of account 20 (posting D20 K28). Now all direct and indirect costs associated with production are collected under the debit account.

How to determine the production actual cost of finished products

WIP at the beginning of the month + + costs per month (turnovers according to D-tu) - - WIP at the end of the month - - returnable materials (10 - 20) - - cost of the final marriage (28-20). ACCOUNT 25 - "General production costs" - in relation to the balance sheet - active, according to the classification - collective distribution, additional account.

Has no balance. According to Debit 25 of the account, expenses are collected during the month. According to Credit 25 of the account, at the end of the month, the costs are distributed to accounts 20 and 23 in proportion to the wages of production workers and to account 28 if a marriage was made in production.

At the same time, correspondence is compiled: D. 20 K. 25 - overhead costs are written off for the needs of the main production D. 23 K. 25 - general production costs are written off for the needs of auxiliary production D. 28 K.

How to determine the amount of actual production cost

PreviousPage 4 of 7Next ⇒ To determine the actual cost of materials used, it is necessary to calculate the sum of deviations of the actual cost of materials from their book price. These deviations are needed in order to write off part of the deviations corresponding to the amount of materials used in production, and for other needs. For example: CALCULATION OF DEVIATIONS Account 10 Account 16 Balance at the beginning of the month of materials in the warehouse of the enterprise Received for the month to the warehouse (turnovers according to the D-th of the account) 200,000 400,000 10,000 20,000 TOTAL: 600,000 30,000 Ratio of deviations to cost materials \u003d 30,000: 600,000 \u003d 0.05 Materials spent per month (turnovers by K-tu accounts) 4) Balance at the end of the month 500,000 600,000 - 500,000 \u003d \u003d 100,000 500,000 x 0.05 \u003d 25000 D. 20 K.

Cost price is expressed in monetary form the current expense of the organization, which is aimed at the production and sale of goods.

Cost price is an economic category, reflecting the production and economic activities of the enterprise and showing the number financial resources spent on the production and sale of products. The cost price has an impact on the profit of the enterprise, while the lower it is, the greater the profitability.

Cost Formula

The cost price includes the sum of all expenses for the release of goods. To calculate using the cost formula, you need to sum up all the costs that were incurred in the production (sales) process:

The cost formula looks like this:

Full \u003d Spr + Rreal

Here Full is the full cost,

Cpr - the production cost of the goods, calculated by the amount of production costs (wages, depreciation, material costs and etc.),

Rreal - the cost of selling products (storage, packaging, advertising, etc.).

If you need to determine the cost of a unit of production, then the formula for the cost of goods produced is calculated using the simple calculation method. At the same time, the unit price of the produced goods is determined by dividing the sum of all costs for the corresponding period by the quantity of goods manufactured during this time.

Cost Structure

The cost formula includes:

Raw materials needed in the production process;
Calculation of energy carriers ( various kinds fuel).
Expenses for equipment and machinery that are necessary for the operation of the enterprise.
Wages of company employees, including payment of all payments and taxes.
General production expenses (office rent, advertising, etc.).
Depreciation expenses for fixed assets.
Administrative expenses and etc.

Features of cost calculation

There are several different methods for calculating the cost of goods. They may be applied according to the nature of the work, services or products produced. There are two types of production costs:

Full, including all expenses of the enterprise.
Truncated cost, referring to unit cost of variable cost production.

Actual and standard cost calculated on the basis of the costs incurred by the company. At the same time, the standard cost helps to control the costs of various resources and, in the event of deviations from the norm, the timely provision of all necessary measures. The actual cost per unit of output can be determined after all costs have been calculated.

Cost types

Cost is of the following types:

Full (average) cost, implying the totality of expenses, including commercial costs for the release of products and the purchase of equipment. The costs of creating a business are divided into periods during which they pay off. Gradually, in equal parts, they are added to general production costs.
Marginal cost, which is directly dependent on the quantity of output and shows the cost of each additional unit of goods. This indicator reflects the effectiveness of the subsequent expansion of production.

Also, the cost can be:

Shop cost, including the total cost of all departments of the enterprise, which are aimed at the production of new products;
The production cost, which is the shop cost, including target and general costs.
The full cost price, which includes not only production costs, but also the costs incurred by the company in the process of selling the product.
General business (indirect) cost, consisting of business management costs and not directly related to the production process.

This indicator shows how efficient and cost-effective production is. Also, the cost directly affects pricing. Now we will tell in detail everything about this qualitative indicator and learn how to calculate it.

General concept of cost

In every textbook on economics, you can find a variety of interpretations of the term "cost". But no matter how the definition sounds, its essence does not change from this.

Production cost - itthe sum of all costs incurred by the enterprise for the manufacture of goods and their subsequent sale.

Under the costs understand the costs associated with the purchase of raw materials and materials necessary for production, remuneration of employees, transportation, storage and sale of finished products.

At first glance, it may seem that calculating the cost of production is quite simple, but this is not entirely true. At each enterprise, such an important process is entrusted only to qualified accountants.

It is necessary to carry out the calculation of the cost of goods on a regular basis. Often this is done at regular intervals. Every quarter, 6 and 12 months.

Types and types of cost

Before undertaking the calculation of the cost of production, it is necessary to study into what types and types it is divided.

Cost can be of 2 types:

Full or average- includes absolutely all expenses of the enterprise. All costs associated with the purchase of equipment, tools, materials, transportation of goods, etc. are taken into account. The indicator is averaged;
Marginal - depends on the number of products produced and reflects the cost of all additional manufactured units of the goods. Thanks to the value obtained, it is possible to calculate the efficiency of further expansion of production.

The cost is also divided into several types:

shop cost- consists of the costs of all structures of the enterprise, whose activities are aimed at the production of new products;
Production cost- represents the sum of the shop cost, target and general expenses;
Full cost- includes production costs and costs associated with the sale of finished products;
Indirect or general business cost- consists of costs that are not directly related to the production process. These are management expenses.

The cost price can be actual and normative.

When calculating the actual cost, they take real data, i.e. Based on the actual costs, the price of the goods is formed. It is very inconvenient to make such a calculation, because often it is necessary to find out the cost of a product before it is sold. The profitability of the business depends on this.

When calculating the standard cost, the data is taken according to production standards. This allows you to tightly control the consumption of materials, which minimizes the occurrence of unnecessary costs.

Product cost structure

All enterprises that produce products or provide services are different from each other. For example , the technological processes of an ice cream factory and a soft toy factory are completely different.

Therefore, each production individually calculates the cost of finished products. This is made possible by a flexible cost structure.

The cost is the sum of the expenses. They can be divided into the following categories:

Spending on raw materials and materials necessary for the production of products;
Energy costs. Some industries take into account the costs associated with the use of a particular type of fuel;
The cost of machinery and equipment, thanks to which production is carried out;
Payment of salaries to employees. This item also includes payments related to the payment of taxes and social services. payments;
Production expenses (rent of premises, advertising campaigns, etc.);
Expenses for holding social events;
Depreciation deductions;
administrative costs;
Payment for services third parties.

All costs and expenses are percentages. Thanks to this, it is easier for the head of the enterprise to find the “weak” aspects of production.

The cost is not constant. It is influenced by factors such as:

Inflation;
Interest rates on loans (if the company has such);
Geographical location of production;
The number of competitors;
Use of modern equipment, etc.

In order for the company not to go bankrupt, it is necessary to calculate the cost of the product in a timely manner.

Formation of production cost

Calculating the cost of production, summarize the costs necessary for the production of products. This indicator does not take into account the cost of selling products.

The formation of the cost at the enterprise occurs before the products are sold, because the price of the product depends on the value of this indicator.

There are several ways to calculate it, but the most common is costing. Thanks to him, you can calculate how much is spent Money to produce 1 unit of output.

Classification of production costs

As we said earlier, production costs (cost of production) at each enterprise are different, but they are grouped according to separate characteristics, which makes it easier to make calculations.

Costs, depending on the method of their inclusion in the cost price, are:

Direct - those that relate directly to the production of products. That is, the costs associated with the purchase of material or raw materials, the remuneration of workers who participate in the production process, etc.;
Indirect costs are those costs that cannot be attributed directly to production. These include commercial, general and general production costs. For example, the salaries of managers.

In relation to the total volume of production, the costs are:

Constants are those that do not depend on the volume of production. These include the rent of premises, depreciation, etc.;
Variables are costs that directly depend on the volume of products produced. For example, the costs associated with the purchase of raw materials and supplies.

According to the significance of a specific decision of the manager, the costs are:

Irrelevant - costs that do not depend on the decision of the manager.
Relevant - dependent on management decisions.

For a better understanding, consider the following example. The company has an empty space at its disposal. Certain funds are allocated for the maintenance of this facility. Their value does not depend on whether some process is being performed there. The manager plans to expand production and use this room. In this case, he will need to purchase new equipment and equip jobs.

There are two ways to calculate the cost of production in production. These are the costing method and the tiered allocation method. Most often, the first method is used, since it allows you to more accurately and quickly determine the cost of production. We will consider it in detail.

Costing - this is a calculation of the amount of costs and expenses that fall on a unit of production. In this case, the costs are grouped by items, due to which the calculations are carried out.

Depending on the activity of production and its costs, costing can be carried out in several ways:

Direct costing. This is the system production accounting, which arose and developed in the conditions of the market economy. This is how limited cost is calculated. That is, only direct costs are used in the calculation. Indirect ones are written off to the sales account;
Custom method. Used to calculate the cost of production for each unit of output. It is used in enterprises that produce unique equipment. For complex and time-consuming orders, it is rational to calculate the costs for each product. For example, at a shipyard, where several ships are produced per year, it is rational to calculate the cost of each separately;
Transverse method. This method is used by enterprises that carry out mass production, and the manufacturing process consists of several stages. The cost price is calculated for each stage of production. For example, at a bakery, products are made in several stages. In one workshop, dough is kneaded, in another, bakery products are baked, in a third, they are packaged, and so on. In this case, calculate the cost of each process separately;
Process method. It is used by extractive industries, or companies with a simple technological process (for example, in the production of asphalt).

How to calculate the cost

Depending on the type and type, there may be several variations of the formulas for calculating the cost. We will consider simplified and expanded. Thanks to the first, every person who does not have an economic education will understand how this indicator is calculated. With the help of the second, you can make a real calculation of the cost of production.

A simplified version of the formula for calculating the total cost of goods looks like this:

Full cost = Production cost of the product + Cost of implementation

You can calculate the cost of sales using the expanded formula:

PST \u003d PF + MO + MV + T + E + RS + A + ZO + NR + ZD + OSS + CR

PF - expenses for the purchase of semi-finished products;
MO - the costs associated with the purchase of basic materials;
MW - related materials;
TR - transportation costs;
E - the cost of paying for energy resources;
PC - the costs associated with the sale of finished products;
A - depreciation expenses;
ZO - wages of the main workers;
HP - non-production costs;
ZD - allowances for workers;
ZR - factory costs;
OSS - insurance deductions;
CR - shop expenses.

To make it clear to everyone how to make calculations, we will give an example of cost calculation and step-by-step instructions

Before proceeding with the numbers, you need to do the following:

Sum up all the costs associated with the purchase of raw materials and supplies needed for production;
Calculate how much money was spent on energy resources;
Add up all the costs associated with paying salaries. Don't forget to add 12% for additional work and 38% for social. deductions and health insurance;
Add deductions for depreciation costs with other expenses that are associated with the maintenance of devices and equipment;
Calculate the costs associated with the sale of products;
Analyze and account for other production costs.

Based on the initial data and costing articles, we make calculations:

Expense Category		Payment	Final value
Fund contributions	Paragraph 4 of the initial data
overhead costs	Paragraph 6 of the initial data
General running costs	Paragraph 5 of the initial data
Production cost of 1000 m of pipes	The sum of points 1-6 ref. data	3000+1500+2000+800+200+400
Selling costs	Paragraph 7 of the initial data
Full cost	The amount of production. Costs and distribution costs

Cost components - what does this indicator depend on

As it has already become known, the cost price consists of the costs of the enterprise. It can be divided into different types and classes. This is the main factor to consider when calculating the cost of the enterprise.

Different cost implies the presence of completely different components. For example, when calculating the shop cost, we do not take into account the cost of selling products. Therefore, each accountant is faced with the task of calculating exactly the indicator that will most accurately show the effectiveness of this enterprise.

The cost of a unit of production depends on how much production is established. If each workshop of an enterprise “lives its own life”, employees are not interested in fast and high-quality performance of their duties, etc., then with great confidence, we can say that such an enterprise suffers losses and has no future.

By reducing the cost of production, the company receives more profit. That is why every leader is faced with the task of establishing a production process.

Cost reduction methods

Before you start reducing costs, you need to understand that product quality should not suffer from this in any way. Otherwise, the savings will be unjustified.

There are many ways to reduce costs. We have tried to collect some of the most popular and effective ways:

Raise labor productivity;
Automate workplaces, purchase and install new modern equipment;
Engage in the enlargement of the enterprise, think about cooperation;
Expand the range, specifics and volume of products;
Introduce economy mode throughout the enterprise;
Use energy resources wisely, use energy-saving equipment;
Make a careful selection of partners, suppliers, etc.;
Minimize the appearance of defective products;
Reduce the cost of maintaining the administrative apparatus;
Conduct market research regularly.

Conclusion

Cost is one of the most important quality indicators of any enterprise. It is not a constant value. Cost is subject to change. Therefore, it is very important to periodically calculate it. This will make it possible to correct market value goods, which will avoid unnecessary costs.

Stage 1. All actual costs incurred during the reporting period on the basis of primary documents on the consumption of materials, the calculation and distribution of wages, the calculation of depreciation of fixed assets and intangible assets on cash spending reflected in production accounts:

- D 20 K 10(51, 60, 69, 70, 96, etc.) - direct costs for the manufacture of products (performance of work, provision of services) of the main production - directly related to the manufacture of products, works, services.

- D 25 K 10(51, 60, 69, 70, 96, etc.) - maintenance and management costs structural unit organizations (workshop, production, workshop, etc.).

- D 26 K 10(51, 60, 69, 70, 96, etc.) - expenses for general maintenance and the organization of production and management in general (general expenses).

- D 97 K 51(60, 76, etc.) - expenses incurred in the reporting period, but relating to future periods.

- D 96 K 10(23, 60, 69, 70, etc.) - expenses incurred at the expense of the created reserves (for the repair of fixed assets, payment for employee vacations, etc.).

Stage 2. Distribution of costs by destination after the end of the reporting period is carried out. First of all, the costs of auxiliary production are distributed. The actual cost of products (works, services) of auxiliary industries, reflected in the debit of account 23, is debited from the credit of account 23 to the debit of accounts 25, 26, 29.

Deferred expenses are debited from the credit of account 97 to the debit of accounts 25, 26 in the share related to the reporting period.

Reserves for future expenses and payments are being formed in accordance with planned calculations ( D 25 (26) K 96).

General business expenses may also be written off as a total amount from loan 26 in debit 20 if the actual cost of each type of product is not determined by the enterprise. General production costs are distributed similarly.

Expenses recorded on accounts 25 and 26 are written off at the end of the reporting period in debit 20 with credit 25, 26.

In accordance with PBU 10/99 organizations can adopt in their accounting policies the procedure for writing off general business expenses directly to debit 90 with loan 26. Losses from marriage are also written off loan 28 in debit 20.

Upon completion of this stage, account 20 collects all direct and indirect costs for the production of products (works, services) for reporting period.

3 (final) stage. The actual production cost of manufactured products is determined. To calculate it, it is determined work in progress at the end of the period, that is, products that have not passed all stages of processing, testing, acceptance, incomplete.

To determine work in progress, it is necessary to know the number of products, parts, blanks remaining in the shops at the end of the period unfinished processing, and the procedure for evaluating these products, parts of blanks. This number of products are identified through an inventory of work in progress. The cost of work in progress is estimated by cost items depending on the type of production.

For the calculation of income tax (Article 319 of the Tax Code of the Russian Federation), the procedure for assessing work in progress is established by the taxpayer on one's own.

Actual production cost finished products (works, services) ( From g.p.) calculated in the following way: C g.p = C n.p.s. + Z f. - Oh w. - Oh br. - From n.a.c. ,

where From n.a.s. , From n.s.c.- the cost of work in progress, respectively, at the beginning and end of the reporting period, rubles; Z f. - actual production costs for the reporting period, rub.; Oh in - returnable waste, rub.; Oh br.- the actual cost of the final marriage, rub.

AT simplified version the actual production cost is calculated as follows:

The actual cost of finished products \u003d WIP in + costs of the reporting period (D 20) - WIP to, where

WIP in – WIP cost at the beginning of the reporting period; WIP to - WIP cost at the end of the reporting period.

The actual production cost of finished products is deducted from account 20, depending on the accepted accounting policy organization of the accounting option:

1st option - to account 43 "Finished products";

Option 2 - to account 40 "Output of products (works, services)".

Cost write-off.

Debit 90 "Sales" subaccount "Cost of sales" Credit 43 "Finished products"- written off the cost of finished products in planning and accounting prices.

Classification of accounts by purpose and structure. Characteristics of matching accounts. Basic operations and accounting entries on the formation of financial results from the sale of products.

Operating accounts, accounts business processes.

Comparing Accounts designed to calculate financial result, both individual business processes and the enterprise as a whole by comparing the debit and credit turnover recorded in these accounts. This is done by comparing the debit and credit turnover for a particular account. A feature of the structure of these accounts is the reflection of one accounting object in two different estimates: in one - on the debit, and in the other - on the credit of the account.

The accounts are divided into two subgroups:

1) Operational-resulting accounts provided to summarize information about individual processes economic activity enterprises, as well as determining the financial result for each of them.

These include accounts: 90 "Sales", 91 "Other income and expenses".

On the debit of these accounts are taken into account: the cost of goods sold, works, services; residual value of fixed assets and book value other current assets; costs associated with the disposal of assets, as well as fines, penalties, forfeits and paid interest. The credit of accounts 90 and 91 reflects proceeds and income from other operations. By comparing debit and credit turnovers, profit or loss from sales (account 90) and other operations (account 91) is determined.

These accounts do not have a balance; the balances received on them are written off monthly, credited to the financial results from sales and other operations from sub-account 9 to the debit or credit of the account 99 "Profit and loss".

These accounts take into account expenses and income from operations related to the sale of products, the performance of various works, the provision of services, the disposal of fixed assets, intangible assets, valuable papers, materials.

2) Financial results accounts are intended to determine the financial result of the economic activity of the organization. An example is an active-passive account 99 "Profit and Loss" and the account 98 "Deferred income" and account 848 " Undestributed profits (uncovered loss)". By account 99 reflected financial results(profit or loss) from the sale of various property items and other operations (operating and non-operating income reduced by the amount of operating and non-operating expenses). By account credit 99 Profits are fixed, losses are debited.

Comparing the turnover on debit (loss) and credit (profit), determine the final financial result: while credit balance shows profit, debit - loss.

We analyzed what constitutes the cost of production and found out that the total cost includes the costs of producing finished products and their subsequent sale. In addition, we briefly got acquainted with the concept of product costing. In this article, we will consider in detail how the calculation of the cost of production and accounting for production costs takes place.

At the initial stage of the formation of the cost of finished products, it is necessary to take into account all the associated costs that have arisen in the relevant accounting accounts.

Direct costs of the main production are reflected in the debit of account 20, auxiliary production - in the debit of account 23.

The actual costs to consider at this stage include:

(posting for accounting for this type of cost has the form D20 (23) K02);
(wiring - D20 (23) K05);
employees (corresponding posting D20 (23) K70);
insurance contributions for employees (D20 (23) K69);
raw materials and (wiring D20 (23) K10);
semi-finished products of own production (D20 (23) K21);
services of third parties (D20 (23) K60).

Expenses of a similar type related to the maintenance and management of production are reflected in similar entries, but instead of account 20 (23), account is used. 25 "General production costs".

Expenses of a similar type related to the management of the organization are also reflected in similar entries, but instead of account 20, account is used. 26 "General expenses".

Also in the production process, it is necessary to take into account the costs arising in connection with the marriage of products. Defective products incur certain costs associated with their elimination. These can be additional materials or raw materials, remuneration of workers involved in correcting the marriage, services of third-party organizations, etc. That is, the costs of eliminating the marriage are reflected in the entries indicated above, but all these expenses are collected not on the 20th account, but on a debit account 28 "Marriage in production".

Thus, all production costs are taken into account. The debit of accounts 20 and 23 collected all direct costs, the debit of accounts 25 and 26 - indirect.

Before proceeding to the calculation of the cost of production, it is necessary to distribute the actual costs of auxiliary production between the main production, general production and general economic needs. For this, postings D20 (25, 26) K23 are performed.

Auxiliary Production Cost Allocation Postings

Write-off of indirect overhead and general business costs

At the end of the month, write off indirect costs, collected on the debit of accounts 25 and 26. Write-off of general production costs is carried out by posting D20 K25, and general business costs - D20 K26.

It should be noted that the distribution of indirect overhead costs by types of products of the main production can be carried out in one of the following ways:

in proportion to the salary of workers in the main production;
in proportion to material costs;
in proportion to the amount of direct costs;
in proportion to the proceeds from the sale of finished products.

The organization chooses one of these methods and reflects its choice in the Order on accounting policies.

Write-off of indirect general business expenses can be carried out as follows:

by distribution between individual types of products (calculation objects);
by writing off expenses in full at the end of the month.

If the organization distributes general business costs between types of products, then the same methods are used for write-offs as for general production costs.

If the organization writes off all accumulated costs in full, then they can be attributed to other expenses, posting D90 / 2 K26.

Now, to calculate the cost, it remains only to take into account the costs associated with correcting the marriage, for this, the accumulated debit 28 accounts are written off to the debit of account 20 (posting D20 K28).

Now all direct and indirect costs associated with production are collected under the debit account. 20 and you can proceed directly to the calculation of the unit cost of production.

Cost calculation

For correct definition production costs need to allocate production costs between finished goods and work in progress.

Work in progress is understood as products that have not passed all the stages and redistributions provided for production process, as well as not passing the test and acceptance. In addition, this also includes materials, raw materials and semi-finished products that have entered production, provided that the process of their processing has begun.

Thus, knowing the total production costs for the month and knowing the balance of work in progress, it is possible to determine the cost of certain types of finished products, that is, to calculate the cost.

The most common costing method is the cost summation method.
Cost summation method

The essence of the method is as follows: for each individual type of product, the balance of work in progress at the beginning of the month is determined, which is added to the monthly amount of actual production costs, losses from marriage and the balance of work in progress at the end of the month are subtracted from the amount received. The resulting value will be the actual production cost of a particular type of finished product.

The formula for calculating the cost of production by the summation of costs:

Fact.self. = Unscheduled start month + expenses for the month - losses from marriage - unfinished production end of the month.

accounting entries

The resulting cost is deducted from the credit account. 20 to debit account 43 or 40.

Account 43 "Finished products" is used in the general case when finished products are accounted for at actual cost (posting D43 K20).

If the standard or planned cost is used for accounting, then you can use the additional account 40 “Output of products (works, services) (posting D40 K20). On the account 40 products will be counted according to planned cost, after which it will be debited to the account. 43 already at actual cost (D43 K40). The resulting deviations in the cost, identified on the account. 40 are reflected in the account. 90.