How do machining companies budget for costs?

First of all, you have to understand the industry, such as discharge, that is, this is very simple, even if how long it takes to use up a barrel of oil, as well as the monthly electricity bill, as well as the wages of workers, monthly food expenses, etc., you understand, then your cost budget will be more accurate

Calculate the cost of the tool.

Calculation procedure in the method of calculating the production cost of the product:

1. Determine the cost calculation method. Before you start costing, it's important to decide which costing method to use. The methods commonly used are the variety method, the batch method, the step-by-step method, etc.

This should be selected according to the characteristics of the production process and production organization, as well as the requirements of cost management.

2. Set up the relevant cost calculation account. In order to calculate the cost of the product, it is necessary to set up a special account, ie"Production costs"Account. The debit side pools the various expenses incurred for the production of the product, and the credit side reflects the manufacturing cost transferred out of the product after completion.

For a certain costing object, the expenses incurred are nothing more than two types:

Direct Expenses. Indirect costs, i.e., costs that are common and not directly serve the production of the object. If the enterprise only produces one product, there is no difference between direct and indirect costs, and both should be directly included in the cost of the product. However, companies generally produce a variety of products.

In this way, direct costs can still be charged directly to the cost of the product, while indirect costs must be pooled and then allocated to different costing objects. In this way, it is necessary to set up a separate account first, ie"Manufacturing costs"Account. "Manufacturing costs"The function of the account is to collect various overheads and allocate them to the costing object reasonably.

If there are many scrap and stoppages, it is necessary to collect information about scrap and stoppage losses and set up a special one"Scrap loss"with"Downtime losses"account, to pool these losses to"Scrap loss"with"Downtime losses"The account is debited, and then appropriately treated and transferred out on its credit: in the case of a normal loss, it should generally be allocated to the cost of the product; Otherwise, it should be transferred to administrative expenses or non-operating expenses.

According to the requirements of the accrual basis, the expenditure incurred in production does not necessarily have to be included in the production cost, and the period of expenditure may not be consistent with the cost calculation period. There are two scenarios after an expense is incurred:

The expenses incurred in production are fully benefited in the current period, and the benefits are not deferred to the next period. In this case, the cost should be charged directly"Production costs"or"Manufacturing costs"Account.

Expenses incurred in the current period shall not be borne by the current period. There are two situations in which the expenses are incurred first, and then the costs are included.

This situation should be set"Expenses to be amortized"account, debited when disbursed"Expenses to be amortized"account, which is credited when the cost is amortized in installments"Expenses to be amortized"Account. Costs first, expenses later. This situation should be set"Withholding Expenses"account, when the current cost is charged, the relevant cost account is debited and credited"Withholding Expenses"account, payment re-debit"Withholding Expenses"Account.

Hello, I am glad to answer for you: how to calculate and carry forward the production cost of large-scale machinery and equipment The answer is: the large group carries forward the income and cost according to the completion schedule.

Production Costs (Manufacturing Expenses, Administrative Expenses, Selling Expenses, etc.) Credit: Raw Materials. 2. Pay wages and borrow:

Production costs (manufacturing expenses, management expenses, sales expenses, etc.) credit: employee remuneration payable - wages (welfare expenses, social insurance, trade union funds, employee education expenses, etc.). 3. Incurred manufacturing costs borrowed:

Manufacturing costs - repair costs (freight, low consumables, etc.) Credit: cash (bank deposits, etc.). 4. Carry forward the manufacturing cost to borrow

Production Costs - Manufacturing Expenses Credit: Manufacturing Expenses. 5. Carry forward the production cost to borrow

Finished Product Credit: Production Costs - Direct Materials (Direct Wages, Manufacturing Expenses).

There are two main methods of costing:

One is the gradual carry-forward method (the final cost is accumulated according to the production process step by step), and the other is the parallel carry-forward method (all production unit costs are collected and carried forward by the headquarters). If the enterprise production workshop is less, the process is not too complex, and the variety of small batches, the use of parallel carry-over method is better, the production unit directly to the original voucher (receipt order, warehousing list, etc.) to the headquarters finance, at the end of the month, the finance according to the original documents and the current period of expenses to carry forward the cost.

One is the material; the second is heat treatment;

the third is the cost of each process;

fourth, the cost of packaging;

fifth, logistics costs;

Sixth, taxes. 7. Marketing costs;

Eight is profit. <>