Why are raw materials used in production included in production costs and low value consumables reco

In fact, in practice, it should be like this, if the material is used for production, whether it is raw materials, or low-value consumables, or semi-finished products, turnover materials, etc., if it is determined to be used for that product when it is used, then it should be directly included in the production cost of that product, on the contrary, if it is not determined that it is used for that product, or it is used for several products together, then it cannot be included in the production cost of a single product, but should be included in the manufacturing cost, which is apportioned at the end of the month.

According to the theory in the textbook, the raw materials used in general can determine what products are produced, which can be directly included in production, while low-value consumables are not easy to distinguish which products are consumed in production, so they should be included in the manufacturing costs first, and then apportioned to each product at the end of the month.

Production cost, also known as manufacturing cost, refers to the cost of production activities, that is, the cost incurred by an enterprise to produce products. 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.

In fact, in practice, it should be like this, if the material is used for production, whether it is raw materials, or low-value consumables, or semi-finished products, turnover materials, etc., if it is determined to be used for that product when it is used, then it should be directly included in the production cost of that product, on the contrary, if it is not determined that it is used for that product, or it is used for several products together, then it cannot be included in the production cost of a single product, but should be included in the manufacturing cost, which is apportioned at the end of the month.

The raw materials used in the production of products are included in the production cost account.

If the material constitutes the product itself, or is necessary for the production of the product, it should be included in the direct material item of the production cost If the material is auxiliary and not necessary for the production of the product, it should be included in the manufacturing expense account of the production workshop as material consumption You said direct consumption.

If it is an accounting topic, it can be regarded as the direct consumption or use of the product, and if it is not a direct material for the production cost, in actual work, as long as it is consumed by the production, it can be regarded as the direct consumption of the workshop, and it needs to be recorded by material category and use.

What raw materials are used to produce products?

General consumable materials are used for workshop equipment maintenance and tools used by workers, not directly used for the production of products, need to be allocated to the production of products, so they are recorded in the manufacturing expense account.

The consumption accounting entries between raw materials and finished products are divided into two steps:

The first step is to collect the materials, and the entries are: Borrow: Production Costs Manufacturing Expenses Credit: Raw Materials.

The second step is to process into finished products First, the manufacturing expenses are decomposed, and the entries are: Borrow: production costs Credit: Manufacturing expenses and then carry forward the finished products, and the entries are: Borrow: inventory goods Credit: production costs.

The raw materials used to produce products are generally reflected as production costs, and in the end they are called inventory goods, etc., so they belong to inventory accounting elements!

If the raw materials used in the workshop for the production of products are used for the production of products, they shall be included in the "production cost".

Borrow: production costs.

Credit: raw materials.

If it is received by the management department, it will be included in the "management fee".

Borrow: Administrative expenses.

Credit: Before the defeat of the raw material group.

Summary. <>

<> hello friends! Low-value consumables that the company has not received before formal production cannot be accounted for. Before the actual production, the low-value consumables received by the company can be regarded as temporary loans or personal expenses, and cannot be recorded as the company's expenses.

If these items are subsequently used in full-scale production, they can be included in the cost of production as cost raw materials. Hope mine is helpful to you!

How to account for the low-value consumables that the company did not receive before formal production.

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<> hello friends! Low-value consumables that the company has not received before formal production cannot be accounted for. Before the official production occurs, the low-value consumables received by the company can be regarded as temporary borrowing or personal expenses by Zhengsuiling, and cannot be recorded as the company's expenses.

If these items are subsequently used in full-scale production, they can be included in the cost of production as cost raw materials. Hope mine is helpful to you!

When it is receiving, it will not be amortized, and it can be amortized in the later stage of formal production.

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<> hello friends! Amortize first, but you need to mark the status of the asset as "Received but not amortized" in the accounting records. Once the official mission is used and amortization begins, the status can be changed to Amortization. This ensures the accuracy and transparency of the financial statements.

Summary. There is a picking list according to the purpose of the picking, directly included in the product, without indicating the product is much more troublesome, can only be allocated according to the output of each product.

Production requisition of raw materials, no output, how to allocate the four products to the cost.

There is a picking list according to the purpose of the picking, directly included in the product, without indicating the product is much more troublesome, can only be allocated according to the output of each product.

How do you ask for the yield?

The approximate output of the process in the product = the number of products in the process * the completion rate of the process in the product.

The first step is to calculate the approximate output of the product in the product formula 1: the approximate output in the product = the completion rate (degree of completion) in the quantity of the product; Completion rate = (cumulative quota working hours per unit product of the previous process + quota working hours per unit product of this process * 50%) Quota working hours per unit of product; Step 2: Calculate the cost allocation rate (i.e., the cost that should be allocated for each completed product) Formula 2: Cost allocation rate = (product cost at the beginning of the period + production cost in the current period) (output of finished product + about equivalent amount of product at the end of the period); The third step is to find the cost of the product in formula 3:

Product cost at the end of the month = Approximately equivalent production at the end of the month Expense allocation rate; The third step is to find the cost formula 3 of the finished productCost of finished products = Number of finished products Cost allocation rate.