How are month end costs generally carried forward?

When manufacturing expenses are carried forward:

Borrow: production costs.

Credit: Manufacturing expenses.

When the production is put into storage:

Borrow: Inventory of goods.

Credit: Production costs.

Carry forward the cost of sales for the month:

Borrow: Cost of main business.

Credit: Inventory of goods.

When carrying forward the main business income:

Borrow: main business income.

Credit: Profit for the year.

When carrying forward the cost of the main business:

Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

When administrative expenses are carried forward:

Borrow: Profit for the current year.

Credit: Administrative expenses.

Carry-forward operating expenses:

Borrow: Profit for the current year.

Credit: Operating expenses.

Carry-forward finance charges:

Borrow: Profit for the current year.

Credit: Finance Expense.

When receiving materials for production.

Borrow: production costs.

Credit: raw materials.

Turn. Borrow: Finished products.

Credit: Production costs.

The cost of the product sold at the end of the month.

Borrow: Cost of main business.

Credit: Finished products.

Transfer-in profits. Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

Turn revenue into profit.

Borrow: main business income.

Credit: Profit for the year.

Raw material input first.

Borrow: production costs.

Credit: raw materials.

Inbound products. Borrow: Inventory of goods.

Credit: Production costs.

The product is out of the warehouse. Borrow: Cost of main business.

Credit: Inventory of goods.

Carry forward profit and loss. Borrow: main business income.

Credit: Profit for the year.

Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

Administrative expenses (write if they occur).

Accounts involving profit and loss, month-end:

Borrow or credit: the opposite direction of the original profit and loss account, and the difference debit or credit: the profit of the current year.

There are two costs that need to be carried forward at the end of the month, one is to carry forward the finished product and the other is to carry forward the cost of the sold product. The purpose is to correctly calculate the cost of the company's products, calculate the profit and loss of the enterprise, and prepare financial reports. The specific carryover method is as follows:

1. Carry forward manufacturing costs.

Before calculating the cost at the end of the period, the balance of the manufacturing expenses is fully transferred to the production cost, and the entries are:

Borrow: production costs.

Credit: Manufacturing expenses.

2. Carry forward the cost of finished products, and transfer out the production costs borne by finished products, and the entries are:

Borrow: Inventory of goods.

Credit: Production costs.

3. Carry forward the cost of sales, carry forward the inventory cost of the products sold, and the entries are:

Borrow: Cost of main business.

Credit: Inventory of goods.

4. After all the above is completed, the month-end carry-over, the income class is carried forward first, and the entries are:

Borrow: main business income, other business income, non-operating income.

Credit: Profit for the year.

5. The entry for the cost of re-carry-forward expenses is:

Borrow: Profit for the current year.

Credit: Cost of Sales Other Operating Expenses Non-Operating Expenses.

Sales tax and surcharges, administrative expenses, selling expenses, financial expenses.

6. Finally, the balance of the current year's profit will be transferred to profit distribution - undistributed profit.

can be done at the end of the year), the entries are:

Profit. Borrow: Profit for the current year.

Credit: Profit Distribution - Undistributed Profits.

Loss. Debit: Profit distribution - undistributed profit.

Credit: Profit for the year.

The cost is carried forward to know what its operating results are. How do I carry it over? For example, if a batch of products is sold, the lender has the main business income, and the debit side is the main business cost when it is carried forward. Carry-forward costs, borrow: main business costs Credit: inventory goods.

The reason for carrying forward costs at the end of the month is to count the profit for the current month, because the profit is equal to the revenue minus the expenses, and the costs are included in this expense. Carry-forward means that all costs are transferred to the current year's profit account.

The purpose of carrying forward the cost at the end of the month is to put the cost into the profit of the current year, so that the income minus the cost can be calculated as the profit, and the profit statement can be issued

The carry-forward costs are mainly for the purpose of accounting for operating results at the end of the period; If the cost is not carried forward, then it is impossible to account for the operating results, through the carry-over to adjust the business strategy and layout, through the first, analysis and management, to maximize profits, the purpose of the carry-over is to maintain the continuity of accounting work;

The month-end carry-forward cost is used to calculate the profit, and only by putting the cost and income together to calculate the difference can we know whether the enterprise is profitable.

The carry-over entries are as follows:

Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

If there are purchased goods, the cost should be carried forward, and when the goods are sold, the cost should be carried forward.

The carry-forward cost is mainly used to calculate the operating results at the end of the period, and if the cost is not carried forward, the operating results cannot be calculated, and the business strategy adjustment and layout are carried out through the carry-forward. Dahua and carry forward the vision also in order to maintain the continuity of the planning work.

For the carry-forward of cost of sales, the following methods can be considered for the amount calculation:

The first revenue percentage method, generally in commercial enterprises, when the cost and **, that is, the gross profit margin is relatively balanced, the income percentage method can be used to carry forward, but this method is not suitable for industrial enterprises.

The second type of monthly weighted average method, the whole month once weighted average method is suitable for goods with a small difference in the purchase price before and after and the cost of sales is regularly calculated and carried forward at the end of the month. It is the unit price of goods in inventory based on the number of goods in the main business income.

The third kind of purchase and sale ledger method, the purchase and sale ledger is suitable for the purchase and sale of commodity inventory is relatively large business enterprises to enable the purchase and sale account, financial personnel can understand the warehousing and balance of each commodity, and automatically calculate the outbound cost of each commodity at the end of the month.

2. Accounting entries.

When carrying forward the cost of goods sold.

Borrow: Cost of main business.

Credit: Inventory of goods.

Extended information: purchase and sales ledger method.

The cost of sales refers to the cost of production of the products sold, the cost of labor services provided, and the business costs of other sales. It includes two parts: the cost of main business and other business costs, of which the main business cost is the cost formed by the business of selling commodity products, semi-finished products and providing industrial labor services; Other business costs are the costs formed by the business of selling materials, leasing packaging materials, leasing fixed assets, etc.

For the cost of main business, it should be recognized on the basis of the quantity of products sold or the number of services provided and the unit production cost or unit labor cost of the product, and the calculation formula is: main business cost = quantity of products sold or quantity of labor services provided Unit production cost of products or unit labor cost of products.

In terms of selling products, the number of products sold can be directly in"Inventory item ledger"on the acquisition; The unit production cost of the product can be calculated and determined by a variety of methods, such as the first-in-first-out method, the last-in-first-out method, the weighted average method, etc., but once the enterprise selects a certain method, it shall not be changed at will, which is the requirement of the principle of accounting consistency.

Calculation of production costs: the number of raw materials used to calculate the amount, labor costs, depreciation of machines, electricity and water costs, etc., all included in the production cost and manufacturing costs, at the end of the month, all the manufacturing costs will be transferred to the production costs, and the production costs will be divided by the number of products in the warehouse, that is, the unit cost of the product will be calculated, and the number of sales at the end of the month will be multiplied by the unit cost, which is the cost of sales.

1.When receiving raw materials and paying wages:

Borrow: production costs.

Credit: raw materials.

Credit: Manufacturing expenses.

Credit: Employee compensation payable.

2.When the finished product is put into storage, it is done

Borrow: Inventory of goods.

Credit: Production costs.

3.When the cost of sales is carried forward.

Borrow: Cost of Main Business = * * *Quantity of Product SalesCredit: Inventory of Goods.

First, the calculation procedure of the cost of sales, there are two methods: forward calculation and backward calculation

1. Algorithm: calculate the cost of goods sold first, and then calculate the balance at the end of the period;

Calculation formula: cost of sales = sales quantity purchase unit price closing balance amount = closing balance quantity purchase unit price.

2. Inverted algorithm: calculate the balance at the end of the period first, and then calculate the cost of sales;

Calculation formula: Closing balance amount = Closing balance quantity Purchase unit price and cost of sales = Beginning balance amount + Increase amount in the current period - Non-sales decrease amount in the current period - Closing balance amount.

When recognizing the "corresponding" main business income, the principle of matching should be applied to carry forward the cost, that is, to recognize an operating income, it is necessary to have an operating cost to match it.

At the time of purchase: borrow: raw materials.

Tax payable (VAT payable VAT - input tax).

Credit: Bank deposits.

Material storage: accompany the fight with caution.

Borrow: production costs.

Credit: raw materials.

Borrow: Inventory of goods.

Credit: Production costs.

At the time of sale: borrow: bank deposit (cash in hand).

Credit: main business income.

Tax payable --- VAT payable (output tax).

Balance**borrowing: the cost of main business.

Credit: Inventory of goods.

Profit or loss carried forward: borrowed: profit for the current year.

Credit: Cost of Principal Operations.

At the end of the month, the amount of production cost accounts to be paid is distributed between the finished product and the unfinished product (i.e., in the product), and the process of this distribution is the cost carryover. At the same time, when selling a product, its cost is also carried forward.

1. Carry forward the manufacturing expenses, and transfer all the balance of manufacturing expenses to the production costs before calculating the costs at the end of the period, and the entries are:

Borrow: production costs.

Credit: Manufacturing expenses.

2. Carry forward the cost of finished products, and transfer out the production costs borne by finished products, and the entries are:

Borrow: Inventory of goods.

Credit: Production costs.

3. Carry forward the cost of sales, carry forward the inventory cost of the products sold, and the entries are:

Borrow: Cost of main business.

Credit: Inventory of goods.

4. After all the above is completed, the month-end carry-over, the income class is carried forward first, and the entries are:

Borrow: main business income Other business income Non-operating income loan: profit for the current year.

Carry-forward cost is the meaning of carry-forward cost of main business. The month-end accounting method is as follows:

Balance**borrowing: the cost of main business.

Credit: Inventory of goods.

Profit or loss carried forward: borrowed: profit for the current year.

Credit: Cost of Principal Operations.

Cost of main business: It is a profit and loss account, which is used to account for the cost of daily activities such as the sale of goods, products, provision of labor services or transfer of the right to use assets. Its debit registers the actual cost of goods sold, products, services, etc.; The credit is registered and transferred at the end of the period"Profit for the year"The amount of the account should be carried forward and there should be no balance.

The account should also have a line breakdown account set up by product category.

Carry-forward cost refers to the transfer of current production costs and manufacturing expenses to finished or semi-finished products, such as the raw materials and labor you put into production: borrow production costs Manufacturing expenses, credit: raw materials and wages payable.

The so-called carry-over cost depends on what criteria your company uses, theoretically, according to the completion of the current input, if 100% of the output is completed, it is easy to directly debit the finished product inventory, credit the production cost manufacturing expense, and turn the current production cost manufacturing expense to 0

The carry-over cost mainly includes the carry-over of production costs and the carry-over of operating costs, which can not be explained in a few sentences. Otherwise, everyone will be doing accounting.

Borrow: Major operating costs.

Credit: Inventory of goods.

It depends on which method of inventory measurement is used. There are four kinds of inventory measurement: individual valuation method, first-in-first-out method, weighted average method and month-end weighted average method, which will affect the amount of inventory goods, and affect the amount of inventory goods will affect the amount of other business costs.

1. The formula of the weighted average method is:

Weighted average unit price = (actual cost of inventory at the beginning of the period + actual cost of inventory with current income) (quantity of inventory at the beginning of the period + quantity of inventory with income from the current period).

2. The formula of the moving weighted average method is:

Weighted average unit price = (actual cost of inventory before revenue inventory + actual cost of inventory for current period) (quantity of inventory before revenue inventory + quantity of inventory for current period).

Actual cost of inventory issued in the current period = quantity of inventory issued in the current period * weighted average unit price.

3. First-in-first-out method. The first-in-first-out method can carry forward the cost of inventory issuance at any time, but it is more cumbersome; If there are many inventory sending and receiving transactions and the unit price of inventory is unstable, the workload is large. When prices continue to rise, the cost of inventory at the end of the period is close to the market price, while the cost of issuance is low and the profit is high.

4. The cost calculation of the individual valuation method is accurate and in line with the actual situation, but in the case of frequent inventory receipt and delivery, the workload of issuing cost discrimination is large.

The cost of main business refers to the direct cost invested in the production and sale of products or services related to the main business, which is a profit and loss account, which is used to calculate the cost that should be carried forward when accounting for the main business income.

1.The cost of the main business carried forward from the sale of inventory goods.

Pre-sale borrowing: Inventory items.

Credit: Production costs.

The cost of sales completion is recognized.

Borrow: Cost of main business.

Credit: Inventory of goods.

2.Labor costs and materials incurred in providing labor services.

Borrow: Cost of main business.

Credit: Bank Deposits Raw Materials.

3.Sell products on the production line.

Borrow: Cost of main business.

Credit: Production costs.

4.At the end of the period, the cost of the main business needs to be carried forward to the current year's profit account: this year's profit.

Credit: Cost of Principal Operations.