Accounting entry of distribution cost of finished products
Manufacturing costs are generally allocated according to the number of machine hours consumed.
WIP cost at the beginning of the month+current production cost-finished product cost this month = WIP cost at the end of the month (i.e. WIP cost at the beginning of next month).
The cost of finished goods and the cost of in-process products can be allocated according to the equivalent output method.
(1) Materials directly consumed:
Borrow: production cost-basic production cost (xx product)
Production cost-auxiliary production cost (xx workshop)
production cost
Loans: Goods in stock -XX products
(2)*** Material consumption:
Distribution rate = * * * Material consumption fee/distribution standard
Quota consumption is usually chosen as the distribution standard.
If calculated according to the planned cost method, the final material cost variance will be adjusted through the raw material cost variance account.
If the actual cost is greater than the planned cost:
Borrow: raw materials (planned cost)
Material cost variance (cost overrun)
Loan: material procurement (actual price cost)
What is the production cost?
Production cost refers to all production expenses incurred by production units for producing products or providing services, including all direct expenses and manufacturing expenses. Direct expenses include direct materials, such as raw materials, auxiliary materials, spare parts, fuel and power, direct wages, wages and subsidies of profitable employees, and other direct expenses, such as welfare expenses; Manufacturing expenses refer to the expenses incurred by branches and workshops in an enterprise for organizing and managing production, including salaries, depreciation expenses, maintenance expenses, repair expenses and other manufacturing expenses of branch and workshop managers.