A and B are the same company, and only the processing fee is charged. How do accounting entries work

This is the accounting treatment of the consignment processing business, and the treatment is as follows:

Accounting treatment for consignment processing.

1.When receiving the materials and materials entrusted to be processed:

Accounting treatment may not be made, but the entrusted processing materials received shall be registered in the reference book, and the increase or decrease of materials received, put into processing and other materials shall be recorded.

2.After the entrusted materials are sent to the production workshop for processing, the labor, auxiliary materials, etc. will be recorded

Borrow: production costs.

Credit: manufacturing expenses, etc.

3.When the processing is completed and put into storage, the processing cost of this batch is carried forward.

Borrow: Inventory goods - consignment processing products.

Credit: Production costs.

4.When the processed product is delivered and an invoice is issued:

Debit: Accounts receivable.

Credit: main business income or other business income.

Tax Payable – VAT payable (output tax).

Tax payable - consumption tax payable (if consumption tax is involved, consumption tax shall be withheld and remitted)5Register the receipt and payment of entrusted processing materials and materials in the reference book, and carry forward the inventory of goods

Borrow: Operating costs or other business costs.

Credit: Inventory Commodities - Commissioned Processing Products.

If the processed materials are fixed and only the processing fee is charged, then the two companies can reach a consistent agreement on the procedures for the use of materials or semi-finished products, that is, the personnel must be clear and clear that there is no objection to the handover procedures, and the processing fee invoice can be issued directly after processing.

A product is completed in a total of 2,000 pieces, and the actual cost is transferred, so that the accounting entries are prepared:

Borrow: Inventory of goods.

Credit: Production Costs - Direct Materials.

Production Costs - Direct Labor.

Production Costs - Manufacturing Expenses.

Actual cost, also known as historical cost, refers to the cash or cash equivalent actually paid when acquiring or manufacturing a property or material. When measured at historical cost, an asset is measured at the amount of cash or cash equivalents paid at the time of its acquisition, or at the fair value of the consideration paid at the time of acquisition. Liabilities are measured in terms of the amount of money or assets actually received by them as a result of the assumption of their current obligations, or the amount of contracts under which they assume their current obligations, or the amount of cash or cash equivalents expected to be paid in the ordinary course of their activities to meet the liabilities.

Extended Materials: Similarities and differences between actual and estimated costs

Estimated costs are those that have not yet been actually incurred, but are estimated in advance based on certain information. Actual cost is the basic principle of cost accounting of enterprises in China. Enterprises can use planned costs, fixed costs and standard costs in ordinary accounting, but they must eventually be adjusted to actual costs.

The concept of actual cost is mainly for products or services, but in practice it also includes the actual cost of raw material procurement and the actual cost of sales, so actual cost is a broad concept, it refers to the actual cost of consumption, relative to the estimated cost, the actual cost refers to the cost that has been incurred and can be clearly recognized and measured.

Compare the actual cost of the enterprise with the planned cost, the fixed cost or the cost of the previous period and the cost of the same industry, etc., so that the cost can be analyzed and assessed, the completion of the cost quota and plan can be understood, the characteristics and development trends of cost changes can be mastered, and the problems existing in cost management can be revealed, so as to take targeted measures to reduce costs and improve the cost management level of the enterprise.

The estimated cost is generally as follows: the cost is estimated based on experience and historical data, such as the purchase price, transportation and miscellaneous expenses and storage fees for the purchase of inventory, etc.; Estimated costs for which there is no historical data, but based on technical data, such as the estimated cost of the first production of the product; Due to the excessive amount of historical and technical data, estimates are used to estimate costs; Yes, the cost of decision-making, although the cost is not actually incurred at the time of decision-making, the amount of possible cost can be reasonably estimated according to the relevant economic business and events.

Borrow: Inventory of goods.

Credit: Production Costs - Direct Materials.

Production Costs - Direct Labor.

Production Costs - Manufacturing Expenses.

Borrow: Inventory Goods Credit: Cost of Production.

Borrow: Production cost - (products with manufacturing expenses, such as product A, etc.) 18500 Credit: Manufacturing expenses 18500

Manufacturing Expenses Production Costs Inventory Commodities The cost of the main business (carried forward manufacturing expenses) (carried forward in the warehouse after the completion of the product) (carried forward in the cost of goods sold) When transferred to the production cost, the production cost naturally increases, so it is debited.

The monetary representation of the utilization of various resources in the production process is an important indicator to measure the technical and management level of the enterprise. Includes direct material costs, direct wages, other direct costs, and indirect costs transferred from allocation; The credit registers the manufacturing cost of the finished product that is transferred to the Goods in Inventory account. The closing debit balance represents the cost of the unfinished product in the production process, that is, the cost of the product at the end of the period.

Manufacturing expenses at the end of the month need to be carried forward, included in the cost of production, and finally included in the cost of finished products. The accounting of manufacturing expenses is mainly to account for the expenses directly related to the production of products, such as the wages of production workers, depreciation and maintenance of production equipment. If the relevant expenses are not clear, they can be split according to the division method of wages and classified into the corresponding production costs and management expenses, and if the division is not clear, they can also be all classified as management expenses.

Borrow: production costs.

Credit: Manufacturing expenses.

Manufacturing expenses are the expenses incurred for production, which are usually recorded in manufacturing expenses, and all of them are carried forward to production costs at the end of the month, and the expenses are borne by the cost of products, and there is no balance at the end of the month.

The balance of manufacturing expenses at the end of each month is zero, and the manufacturing expenses incurred by the unit each month are re-debited, so they must be transferred from the loan, and the manufacturing expenses are items that occur because of the production of products, so this expense must be transferred to the production costs.

Entries are transferred in from Production Costs - Manufacturing Expenses.

Credit: Manufacturing expenses.

There are three breakdowns under the production cost, materials, labor, and manufacturing expenses.

The material, labor, and manufacturing expenses incurred in the current month are transferred to the three details of production costs at the end of the month.

Borrow: Production Costs--- Manufacturing Expenses 18500 Credit: Manufacturing Expenses 18500

Borrow Production Cost 18500

Credit Manufacturing Costs 18500

Debit: Accounts receivable 50000

Credit: main business income.

Tax Payable - VAT Payable - Output Tax.

Borrow: 20000 items in stock

Credit: Production cost 20000

Borrow: Cost of main business 20,000

Credit: 20,000 goods in stock

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The following aspects need to be considered in the accounting of the rubber sold after the processing of product A and product B: the cost of raw materials: including the cost of raw materials for product A and product B, as well as the cost of other materials required in the processing process.

Labor costs: The labor costs required in the processing process, including direct labor and indirect labor. Depreciation and maintenance expenses of production equipment:

Depreciation and maintenance expenses of equipment used in the processing process. Management expenses: including production management, sales management and other expenses.

Profit: According to the profit requirements of the enterprise, plus the corresponding profit margin. Extended Supplements:

When calculating the cost of raw materials, factors such as procurement costs, transportation costs, inventory costs, etc., need to be taken into account. When calculating labor costs, factors such as employee salaries, social insurance, and welfare benefits need to be taken into account. When calculating the depreciation and maintenance expenses of production equipment, it is necessary to consider factors such as the service life of the equipment, the depreciation rate, and the maintenance costs.

When calculating administrative expenses, factors such as the salary, office expenses, travel expenses, etc., of the management personnel need to be taken into account. When calculating profits, it is necessary to determine a reasonable profit margin according to market demand and competition. In short, for the cost accounting of the sales of product A and product B after processing, it is necessary to take into account many factors, and comprehensive and detailed accounting can help enterprises better grasp the cost of products and achieve better economic benefits.

The unit cost of a product is 150, and the accounting entries of the cost of sales are carried forward for this month.

Cost of main business Other operating costs; Credit: inventory goods, raw materials, etc. The cost of main business refers to the cost incurred by an enterprise in recurrent activities such as selling goods and providing labor services.

Generally, when an enterprise recognizes the income from its main business 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 are transferred to the cost of the main business.

The same enterprise can use different calculation methods, mainly including the variety method, batch method and step-by-step method.

1. Variety methodThe variety method is a method that uses product varieties as the cost calculation object to collect production costs and calculate product costs. Since the variety method does not need to calculate the cost by batch, nor does it need to calculate the cost of semi-finished products by step, this cost calculation method is relatively simple.

The variety method is mainly suitable for enterprises with large-scale single-step production, or small enterprises that are multi-step production, but do not require the calculation of the cost of semi-finished products. The variety method generally calculates the cost of products on a monthly basis, and does not need to allocate production expenses between finished and semi-finished products.

2. Batch method: Batch method is also known as order method. It is a method that uses the batch or order of the product as the cost calculation object to collect production expenses and calculate the cost of products. The batch method is mainly suitable for multi-step production of single pieces and small batches.

The costing period of the batch method is not fixed, and generally a production cycle (i.e., the entire period from production to completion) is used as the costing period to calculate the cost of the product on a regular basis.

Since there is no finished product when it is not finished, and there is no product in progress after completion, the finished product and the product in progress do not coexist at the same time, so there is no need to allocate the production cost between the finished product and the finished cattle.

3. Step-by-step methodThe step-by-step method is a method to collect production costs and calculate the cost of sedan products according to the production steps of the product. The step-by-step method is suitable for multi-step production in large quantities or large quantities. Due to the large number of production, there are often finished products at a certain time, and there are unfinished products and semi-finished products, and it is impossible to calculate the cost after all the products are completed.

Therefore, the step-by-step method generally calculates costs on a monthly basis, and the production costs are allocated between finished and semi-finished products.