How to carry forward the cost of finished products this month How to make accounting entries

It is very difficult to carry forward accurately, the end of the period is not completed in the product, you do not set this account, then do not empty the production cost, leave the corresponding part of the direct material (anyway, the main material) on the book, the corresponding material cost of the finished product, as well as labor (wages), manufacturing expenses and other accounts carried forward, the distribution of labor and manufacturing costs must not need me to say, the entries are made:

Borrow: Inventory of goods.

Credit: Direct material (remember, is the material consumed by the finished product, not all) salary. Manufacturing costs.

…A detailed account of the cost of production).

Borrow: Inventory of goods.

Credit: Production costs.

Finished products refer to the products that the enterprise has completed the entire production process and has been inspected in the warehouse to meet the standard specifications and technical conditions, and can be sent to the ordering unit in accordance with the conditions specified in the contract, or can be sold as commodities.

Guide to the Application of Accounting Standards for Business Enterprises - Accounting Subjects and Major Accounting Treatments 1406 Inventory Commodities. 1. This account accounts for the actual cost (or purchase price) or planned cost (or selling price) of various commodities in the inventory of the enterprise, including finished products in inventory, purchased commodities, commodities stored in the store department to prepare **, commodities issued for exhibition, and commodities stored outside.

The substitute products that accept the processing and manufacturing of incoming materials and the substitute repair products that are processed and repaired by other units shall be regarded as the finished products of the enterprise after the completion of manufacturing and repair and the inspection of the warehouse, and shall be accounted for through this account.

The practice of carrying forward production cost accounting entries is as follows:

At the end of the month, manufacturing enterprises need to allocate the production cost between the finished product and the product according to a certain distribution method, and the production cost allocated to the finished product needs to be carried forward to the "inventory goods". The production cost mainly includes direct materials, direct labor and manufacturing expenses, and in terms of account setting, there are two secondary accounts under the production cost, "basic production cost" and "auxiliary production cost".

At the end of the period, production cost carry-forward entries:

Carry-forward manufacturing expenses:

Borrow: Production cost - basic production cost.

Credit: Manufacturing expenses.

Carry forward ancillary production costs:

Borrow: Production cost - basic production cost.

Credit: Production Costs - Auxiliary Production Costs.

Carry forward the production cost of the finished product:

Borrow: Inventory of goods.

Credit: Production Costs – Basic Production Costs.

The direct materials consumed by the product are directly included in the "production cost - basic production cost" (receiving raw materials, borrowing: production cost - basic production cost Credit: raw materials; Workshop workers' wages and salaries, borrowed:

Production costs - basic production costs Credit: Payable Employee Compensation), depreciation of machinery and equipment, wages of workshop managers and other indirect costs are collected through "manufacturing expenses" (borrow: manufacturing expenses Credit:

Accumulated depreciation Payable Employee Compensation), at the end of the month, the "Manufacturing Expenses" are carried forward to the "Production Costs".

Debit: Cost of Main Business, Credit: Inventory Goods, No balance in the main business cost account after carryover.

The cost of main business refers to the cost incurred by an enterprise in recurring activities such as selling goods and providing services. Generally, when an enterprise recognizes the main business income such as the sale of goods and the provision of services, or at the end of the month, the cost of the goods sold and the services provided is carried forward to the cost of the main business.

Other business costs refer to the expenses incurred in daily business activities other than the main business activities recognized by the enterprise, including the cost of materials sold, the depreciation of leased fixed assets, the amortization of leased intangible assets, and the cost or amortization of leased packaging.

The accounting entries are carried forward for manufacturing expenses: debit-production costs; Credit: Manufacturing expenses. Production Cost Carry-forward: Loan - Inventory Goods; Credit: Production costs.

The cost of production is an asset-class account, with the debit side indicating an increase and the credit side indicating a decrease, and there may or may not be a balance at the end of the period. Cost carry-forward mainly includes: allocating and carrying forward manufacturing expenses, calculating and carrying forward the production cost of finished products, and calculating and carrying forward the cost of sales of sold products.

The cost carry-forward is a follow-up to the adjustment of the accounts at the end of the period, and the purpose is to match Zheng and Li's income and expenses for the current period to correctly determine the profit and loss for the current period.

Production cost definition

The cost of production, also known as manufacturing cost, refers to the cost of production activities, that is, the cost incurred by the enterprise to produce the product. Production cost is a monetary representation of the utilization of various resources in the production process, and is an important indicator to measure the technology and management level of an enterprise. The production cost method is a cost calculation method commonly used in countries around the world, and when the production cost method is used to calculate the cost, only the direct material costs, direct labor costs and manufacturing costs incurred in the production and operation process are included in the product cost.

1. Production costs are carried forward to inventory goods.

Borrow: Inventory of goods.

Credit: Production costs.

2. The carry-over cost of sales goods.

Borrow: Cost of main business.

Credit: Inventory of goods.

3. Carry forward the cost of main business at the end of the month.

Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

The cost of production cannot be carried forward directly to the profit of the current year, and the cost of production is an inventory account. First of all, the production cost is carried forward to the inventory goods after completion, and the main operating cost is carried forward after the inventory goods are sold, and then the profit of the current year is carried forward through the main business cost. Slippery.

The corresponding account carried forward at the end of the month of the production cost account is not related to the profit account of the current year, and the finished product will be carried forward to the cost of sales or the corresponding cost account when the product is shipped out of the warehouse to achieve sales, and then carried forward to the profit account of the current year.

This subject calculates the production costs incurred by enterprises in industrial production, including the production of various products (finished products, self-made semi-spike products, etc.), self-made materials, self-made tools, self-made equipment, etc.

For the various production costs incurred by enterprises (agriculture) in agricultural production, this subject can be changed to the "5001 Agricultural Production Cost" subject, and the cost accounting objects (consumable biological assets, productive biological assets, Xinzuqiao public welfare biological assets and agricultural products) and cost items can be determined for planting, animal husbandry, forestry and aquaculture respectively, and the expenses can be collected and distributed.

Answer: The workshop receives raw materials, and directly disturbs the travel according to the cost accounting objectProduction costs, credit: raw materials;The wages of workers shall be directly credited or allocated according to the cost accounting object.

For example, the wages of direct production workers are directly included, and the wages of auxiliary or workshop management personnel are included. Borrow: manufacturing expenses, production costs, credit:

Employee remuneration payable;When manufacturing expenses are incurred, they are first collected in the manufacturing expense account, and then a certain method, such as fixed working hours, is used to allocate and include them in the cost accounting object. Borrow: Production costs, Credit:

Manufacturing costs. At the end of the month, the product is completed and put into storage, borrowing: inventory goods, credit: production cost.

What are the methods of production cost carry-forward?

The cost accounting system includes the variety method, the batch method, the step-by-step carry-over method, the parallel carry-over step-by-step method and the activity costing method.

Breed method. Also known as the simple method, it is a method of calculating the cost of products by taking the product variety as the object of product cost calculation, collecting and distributing production expenses, and calculating the cost of products. It is mainly suitable for a large number of single-step production enterprises, and is favored by them.

Batch method. It is a method of collecting production costs and calculating product costs according to product batches. In the small batch of single-piece production enterprises, the production activities of the enterprise are basically based on the order of the order of the order to organize the production, according to the product batch calculation of product cost, often consistent with the calculation of product town cost according to the order, so the batch method is also called the order method.

Step-by-step carryover.

Also known as the sequential carry-over step-by-step method, it is in accordance with the sequence of continuous processing of products, according to the production steps of the collection of costs, expenses and output records, the cost of self-made semi-finished products is measured, and the cost of self-made semi-finished products is along with the semi-finished products.

Parallel carryover step-by-step.

The step-by-step method of parallel carry-over is specifically applied to the following enterprises: 1. Enterprises with semi-finished products that have no independent economic significance or have semi-finished products but do not require separate calculation of the cost of semi-finished products. Such as:

Brick and tile factory, porcelain factory, etc. 2. Generally, the prefabricated complex production enterprises that do not calculate the cost of spare parts, such as machinery manufacturing enterprises with mass production.

Activity costing and ABC-based activity cost management (ABCM) have been widely used in enterprises in the United States, Japan and Western European countries, especially high-tech enterprises with fierce competition and low labor costs.

How to make accounting entries for the production cost of carry-forward products? There is no difficulty in writing entries, but the collection of costs is the top priority of practical work, and it is necessary to choose a cost carry-over method suitable for the enterprise itself, so that all the costs of the slowdown can be summarized and distributed accurately without omission, so as to calculate the accurate product cost.

In commercial enterprises, the cost of carry-forward finished products is a very basic and common business treatment, and general enterprise accountants are required to master the accounting entries related to it. So how to prepare the carry-over entries of finished products? How to calculate the cost of finished products?

Entries that carry forward the cost of finished goods.

Borrow: Inventory of goods.

Credit: Production costs.

Definition of finished product.

Finished products refer to the technical conditions and standard specifications of the enterprise after completing all the production processes and having been inspected in the warehouse, which can be sold as the company's commodities and can also be sent to the ordering unit according to the regulations.

How to calculate the cost of carry-over products?

The cost of the finished product includes the following points: calculating and carrying forward the production cost of the finished product; calculate and carry forward the cost of sales of products sold; Allocation and carry-forward of manufacturing costs (the number of man-hours worked in the production of the finished product multiplied by the allocation rate equals the manufacturing cost that the product should bear).

1.Calculation and carry-forward of the manufacturing cost of the finished product.

At the beginning of the month, the cost of the product plus the production cost of the month minus the cost of the product at the end of the month is equal to the total cost of manufacturing the finished product of the month;

The total cost of manufacturing a finished product this month is equal to the unit manufacturing cost of a finished product.

2.Calculation and carry-forward of cost of sales.

When the finished product is completed and put into storage, its amount is the cost of the product completed in the previous period and the current period, and the finished product issued by the sale may be completed and put into storage in the current period, or it may be completed and stored in the previous period or the previous period.

3.The costing calculation of the distribution carry-forward of the manufacturing expenses.

1) Calculate the distribution rate of manufacturing costs: the total amount of manufacturing costs divided by the total working hours of production workers is equal to the distribution rate of manufacturing costs;

2) Calculate the manufacturing cost that should be borne by each product.