Under the cost of production is understood as moneythe expression of all costs incurred by the enterprise in its production. Calculation of this value is necessary for the formation of prices for finished goods and the adoption of management decisions aimed at increasing the profitability of the business entity. The cost price can be planned and actual.
The first type of cost includes the maximumpossible costs of the enterprise for the manufacture of goods. They are calculated on the basis of plans drawn up for the coming periods. The actual cost price is a monetary expression of the funds actually expended on the goods released.
Inclusion in accountingmaterial and industrial stocks involved in technological processes, is carried out proceeding from the financial resources actually spent for their acquisition. The actual cost price of circulating assets is a monetary expression of the costs incurred by the organization for their acquisition. They include:
- amounts paid for tangible assets in accordance with the concluded contracts;
- amounts spent by the organization for information and consulting services, which are related to the acquisition of material and production reserves;
- fees paid for customs clearance;
- the amount of non-refundable taxes, the payment of which is included in the value of material values;
- the monetary equivalent of the services of intermediary organizations;
-costs incurred to procure and transport stocks (material-production) to the place of their use;
- costs incurred by the organization for the processing of current assets, for acceptance by them of the state necessary for use in technological processes (packaging, sorting);
- general economic expenses directly related to the acquisition of stocks;
- Other costs associated with the purchase of MPZ.
Actual cost of goods producedorganization is a material and production reserve, which is intended for sale. Accounting and determination of costs incurred during the technological cycle, the business entity conducts on the basis of the procedure that is established to identify the amount of costs for certain types of goods. Thus, the actual cost of products ready for sale is a valuation of raw materials and materials, natural and labor resources, fixed assets and energy that the organization has spent during the production process.
Accounting of the issued goodscan produce in two ways. The criterion for the reflection of finished products at the first of them is the actual production cost. In the second method, the goods are accepted for accounting at planned or standard costs.
The actual cost of production (finished) atthe first way of reflection in the accounting registers comes to the debit of account 43 "Finished products", in correspondence with the credit of account 20 "Main production". Organizations use this method of accounting for released products most often.
Actual costs incurred by the entitymanaging the production of goods, can be calculated only after the end of the reporting month, when both direct and indirect costs are determined. In this regard, the cost of products sold in the same period, can not be calculated. In order to avoid this inconvenience, there are certain ways to write-off finished products:
- at the cost of one unit;
- at the average cost price;
- using the FIFO method;
- using the LIFO method.
