Are direct materials and direct labor necessarily direct expenses? Does manufacturing cost have to b

Since it has been said that it is direct labor and direct materials, that is to say, it can be determined that they must be direct expenses, otherwise they cannot be called direct materials and direct labor. Manufacturing costs are a collection account, so the content of its accounting is not necessarily all overheads. Indirect costs must be collected in terms of manufacturing costs, but manufacturing costs can also be grouped together in some direct costs that are smaller or difficult to distinguish between product types.

The so-called direct and indirect are distinguished in a broad sense in terms of whether the attribution of consumption can be distinguished.

For example, our accountants keep accounts manually, which requires account pages, gutters, mouth paper, paper, pens, ink, glue, etc., and the basic office items that constitute account books include account pages, binding lines, and mouth paper, which are "direct materials"; Paper, ink, and glue are also used for bookkeeping, but they do not constitute the entities of the book, they are consumed for bookkeeping, so this type of expense is an indirect cost for the process of "bookkeeping"; The fountain pen is also used for bookkeeping, but its use in a short period of time does not occur because of the bookkeeping and the "quantity" decreases, but its value will gradually decrease, so as a "fixed asset" management, and the salary of the accounting staff is for the "bookkeeping", so it can be directly included in the "production cost - direct labor", and the salary of the financial section chief is for the management of financial work, not for bookkeeping, so his salary belongs to "management expenses - wages".

Mistake. 1. Direct expenses: refers to the costs incurred by an enterprise for the production of a certain type and a certain number of products.

2. Indirect costs: refers to expenses that cannot be directly included in the production cost of products.

3. Direct material costs: refers to the costs of raw materials, main materials, purchased semi-finished products, auxiliary materials and other direct materials that are directly used in the production of products and constitute the product entity.

Further information: Manufacturing costs refer to the indirect costs incurred by enterprises in the production of products and the provision of labor services, including the production departments of enterprises (such as production workshops).Utility charges, depreciation of fixed assets, amortization of intangible assets, employee remuneration of management personnel, labor protection expenses, environmental protection expenses stipulated by the state, seasonal and repair shutdown losses, etc.

Aggregation Categories. Indirect material costs.

Indirect materials refer to the material costs consumed by the production unit of an enterprise in the production process, but cannot or cannot be classified into a specific product. Such as lubricating oil for machines, repair spare parts, etc. The collection of overhead costs can generally be based on the original records such as the "Material Cost Allocation Table".

General ledger and subledger that are charged to manufacturing expenses.

Indirect labor costs.

Indirect labor costs refer to those labor costs that are not directly involved in the production of products or cannot be classified as direct labor in the production unit of the enterprise, such as the wages of repair workers and the wages of management personnel. The indirect labor costs shall be recorded in the relevant manufacturing cost ledger according to the amount determined in the "Wage and Welfare Expense Allocation Table", and the accounting voucher shall be prepared according to the "Wage and Welfare Expense Allocation Table" to be credited to the "Manufacturing Expense" account.

Depreciation expenseDepreciation expense refers to the part of the value of a fixed asset that is transferred to the cost due to wear and tear in use. The depreciation expense of fixed assets is collected by summarizing the depreciation calculation details of each workshop and department prepared on a monthly basis to compile the "depreciation expense distribution table" of the entire enterprise. The manufacturing expense subledger and general ledger are registered according to the Depreciation Expense Allocation Table.

Low-value consumables.

Low-value consumables refer to various labor means that are not accounted for as fixed assets, including general tools, special tools, management tools, labor protection supplies, etc. Low-value consumables consumed by production units, due to their low value or easy damage, generally do not need to calculate their transfer value strictly like fixed assets, but use a relatively simple method to transfer their expenses to the cost of products at one time or in parts. When the one-time amortization method is adopted, the value of low-value consumables can generally be summarized and compiled together with other materials, and the relevant costs and expenses can be directly included in the relevant costs; In the case of amortization, the value of the low-value consumables should be amortized to the relevant costs on a monthly basis according to their useful life.

Other expenditures. Other expenditures of the production unit of the enterprise refer to the expenses other than the above-mentioned expenses, such as water and electricity expenses, travel expenses, transportation expenses, office expenses, design and drawing expenses, labor protection expenses, etc. Most of these expenses are paid in bank deposits or cash, and are not directly related to the product, and generally do not set up a separate cost item, and should be included in the general ledger and sub-ledger of "manufacturing expenses" after preparing accounting vouchers one by one according to the relevant original vouchers when expenses are incurred.

It is true that the manufacturing cost is the indirect cost, and the direct material direct labor is the direct cost.

1. Direct expenses include direct materials, direct labor (wages of production workers), commodity purchase prices and other direct expenses incurred by enterprises in the production of commodities and the provision of labor services. Indirect costs refer to the various expenses incurred by the production units (production departments, workshops, etc.) of the manufacturing enterprises for the organization and management of production, including the wages and welfare expenses of the management personnel of the production units, office expenses, water and electricity expenses, machinery and material consumption, labor protection expenses, depreciation costs of machinery and equipment, repair costs, amortization of low-value consumables, etc. Period expenses refer to various expenses that cannot be directly attributed to a specific cost accounting object in the daily activities of an enterprise and should be directly included in the current profit or loss when incurred.

Period expenses include administrative expenses, selling expenses, and financial expenses.

2. What kind of expenses do the above belong to, and they are not related accounting accounts, while production costs belong to production accounts. First of all, the production cost includes materials, labor, and expenses, specifically direct materials, direct labor, and manufacturing costs. Direct materials and direct labor can be directly included in the production cost because they have a clear amount at the time of production, while the manufacturing cost is the expenditure of the management department on all the products of the enterprise, and it is impossible to directly determine which product it belongs to.

Therefore, it needs to be carried forward to the manufacturing cost first, and at the end of the month, it needs to be transferred to each product according to a certain method (generally the proportion of working hours), such as depreciation expenses, which are common expenses of all products of ABC and need to be allocated to the production costs of various products according to working hours. When the production cost of inventory goods is carried forward, the direct production costs incurred by the enterprise (generally the wages of workers in the production workshop and the materials received) are debited to this account (basic production cost and auxiliary production cost), and credited to the accounts of "raw materials", "cash in hand", "bank deposits", "employee remuneration payable" and so on.

3. The manufacturing expenses (i.e., indirect labor and materials) that should be borne by each production workshop (including the production workshop management department) shall be debited to this account (basic production cost and auxiliary production cost) and credited to the "manufacturing expense" account. At the end of the period (month), the labor services and products provided by the auxiliary production workshop for the basic production workshop, the enterprise management department and other departments shall be allocated to each beneficiary object according to a certain distribution standard, and this account (basic production cost), "management expenses", "sales expenses", "other business costs", "construction in progress" and other accounts shall be debited and credited to this account (auxiliary production cost).

The answer in my book is yes, but I just don't understand why, manufacturing costs are really not overheads.

Manufacturing costs and direct labor costs, manufacturing costs are indirect costs relative to people, and direct labor costs are direct costs relative to people. Manufacturing costs and direct labor are two different concepts, with different nature and different content. Manufacturing expenses are the indirect costs incurred by enterprises in the production of products and the provision of services.

Enterprises should reasonably choose the method of allocation of manufacturing expenses according to the nature of manufacturing costs. Manufacturing expenses include indirect material costs, indirect labor costs, depreciation costs, low-value consumables, and other expenses. Direct labor costs refer to the wages, allowances, subsidies and welfare expenses of workers directly engaged in the production of products in the process of producing products and providing labor services.

1.Direct material.

Direct materials refer to raw materials, main materials, purchased semi-finished products and auxiliary materials that contribute to the formation of products that are directly used in the production of products and constitute the product entity.

2.Direct labor.

Direct labor refers to the wages of workers who directly participate in the production of products and other forms of employee compensation.

3.Manufacturing costs.

Manufacturing expenses refer to the indirect costs incurred by enterprises in the production of products and the provision of labor services, including the wages of production workshop management personnel and other employee remuneration and depreciation.

Office expenses, water and electricity expenses, machine material consumption, labor protection expenses.

Downtime losses during seasonality and repairs, etc.

Extended material: Chart of Accounts.

It refers to the accounting elements in accordance with the content of economic business and the requirements of economic management.

The specific content of the ledger accounts is classified and accounted for. Accounting accounts are divided into general classification accounts and detailed classification accounts according to the level of detail of the information they provide and their reconciliation relationships.

A general classification account is an accounting account that summarizes the specific content of accounting elements and provides general information, such as:"Accounts receivable.

Raw materials"and other subjects.

A sub-ledger account is an account that further classifies the general ledger account and provides more detailed and specific accounting information, such as:"Accounts receivable. "The account is set up as a detailed account according to the name of the debtor, and the specific object of the accounts receivable is reflected in the reverse answer.

In order to facilitate the preparation of accounting vouchers, the registration of account books, the inspection of accounts, and the implementation of computerized accounting.

On the basis of the classification of the ledger accounts, each ledger account should be assigned a fixed number, which is called the ledger account number, referred to as the account number. The account number clearly indicates the category to which the account belongs and its position in the category.

For example, the "Accounting System for Industrial Enterprises" uses three digits to number the accounting subjects, and the asset accounts are all numbered with 1 as the first digit; Liabilities are all based on 2 as the first digit; Owner's equity accounts all have 3 as the first digit; Cost accounts.

All are sold with 4 as the first number; Profit and loss accounts.

All take 5 as the first digit, under the main category, the same number is used as the second digit for the accounting subjects with the same business nature, and under the accounting subjects of the same business nature, each accounting account is arranged in the third digit. In order to facilitate the accounting work, the number, category and name of the account are usually standardized in the form of a chart of accounts in the accounting system.

Be. In manufacturing cost accounting, direct material and direct labor expenses in a broad sense belong to variable costs.

In a narrow sense, for labor expenses, direct labor that is paid by piece rate (or working hours) is a variable cost, otherwise it is a fixed cost.

Variablecost refers to the payment to various variable factors of production.

such as the cost of purchasing raw materials and electricity consumption and workers' wages. This cost varies with production volume and is often not paid until the actual production process has begun. Variable costs, like fixed costs, are also conditionally dependent on the linear dependence between variable costs and business volumes, that is, there is a certain applicable range, and when the relevant range is exceeded, the amount of variable costs may change nonlinearly.

Variable costs can be divided into two categories according to the reasons for their occurrence. One is technical variable costs and the other is discretionary variable costs. Technical variable cost means that the unit cost is determined by technical factors, and the total cost is proportional to the change in consumption.

Variable costs, usually expressed as the direct cost of material consumption of the product. Discretionary variable costs are variable costs that can be varied by the management of the enterprise.

Fixed costs, also known as "fixed expenses," are symmetrical of variable costs. Fixed costs refer to those parts of costs that do not change with the output of products or the flow of goods within a certain range. Fixed costs are mostly indirect costs, such as fixed assets.

depreciation and maintenance costs, office expenses.

Wait. When the volume of products or the flow of goods changes beyond a certain range, the fixed costs will increase or decrease. So, fixed costs are a relatively fixed concept, which we call "relative fixed costs".

Fixed cost refers to the total cost within a certain period of time and within a certain business volume, which is not affected by the increase or decrease of business volume. Fixed costs are costs that will occur regardless of whether they are produced or not, such as depreciation.

The production cost of the industry is composed of cost items such as direct materials, direct labor, and manufacturing expenses.

Direct materials: The raw materials that make up the body of the product and the main and auxiliary materials that contribute to the formation of the product. Including raw materials, auxiliary materials, spare parts, purchased semi-finished products, packaging, low-value consumables and other expenses.

Employee compensation for workers who are directly engaged in the production of products by direct labor. The above-mentioned direct expenses are calculated according to the actual number incurred, and are collected according to the cost accounting object, and directly included in the cost according to the original voucher or the summary table of the original voucher.

Manufacturing costs. Various indirect costs incurred for the production of products and the provision of labor services, such as the wages and welfare expenses of workshop management personnel, depreciation costs of workshop buildings and machinery and equipment, lease costs, machine and material consumption, water and electricity costs, office expenses, downtime losses, information system maintenance costs, etc. Expenses that cannot be directly included in the cost according to the original voucher or the summary table of the original voucher need to be allocated to the cost accounting object according to a certain standard.

Extended information: Review the authenticity of the quantities consumed in materials and whether non-production materials are included in direct material costs. Spot check the product cost calculation sheet to check whether the calculation of the product cost is correct, whether the allocation standard and calculation method of the material cost are reasonable and appropriate, and whether it is consistent with the direct material cost of the product in the material cost allocation summary table.

Spot check the original vouchers issued by the materials and the receipt of Laming, check whether the issuance of the picking list has been approved, whether the summary table of the materials issued has been reviewed by appropriate personnel, whether the unit cost valuation method of materials is appropriate, and whether it is recorded in a timely manner; Enterprises that adopt fixed costs or standard costs should also check whether there are any significant changes in their fixed costs and standard costs.

Other expenditures of the production units of the enterprise are expenses other than the basic expenditure, such as water and electricity expenses, travel expenses, transportation expenses, office expenses, design and production expenses, labor protection expenses, etc.

Most of these expenses are paid in bank deposits or cash, and are not directly related to the product, and generally do not set up a separate cost item, and should be included in the general ledger and sub-ledger of "manufacturing expenses" after preparing accounting vouchers one by one according to the relevant original vouchers when expenses are incurred.