(1) Direct materials refer to raw materials, auxiliary materials, spare parts, outsourced semi-finished products, fuels, power, packaging materials, low-value consumables and other direct materials consumed for the production of products.
Among them, when the occupancy rate of fuel and power is significant, items can also be set separately. In addition, if there are homemade semi-finished products, separate projects should be set up.
(2) Direct labor refers to the wages, bonuses, allowances and subsidies of personnel directly engaged in product production.
(3) Manufacturing expenses refer to the indirect expenses incurred by each production workshop of an enterprise for organizing and managing production. Including wages and welfare expenses, depreciation expenses, consumption of machinery and materials, office expenses, utilities, insurance fees, etc.
2. Divide the cost that should be included in the product cost into the cost that should be included in this month and the cost that the product should bear in other months.
Mainly concerned with prepaid insurance premiums and other expenses, amortized on the accrual basis.
3. Collect and allocate the production costs that should be included in this month's products to each product, and calculate the costs of each product.
If a variety of products are produced in the same workshop at the same time, the materials and labor costs can be accounted for separately according to the products; If you can't distinguish, you can allocate materials according to the fixed consumption of each product and allocate labor costs according to the fixed working hours.
4. For products that are not fully completed at the end of the month, the production cost of the product (the sum of the production cost at the beginning of the month and the production cost of this month) should be allocated between the finished product and the end of the month, and the total cost and unit cost of the finished product should be calculated.
Enterprises should adopt appropriate allocation methods to allocate production costs between finished products and products according to the specific conditions such as product quantity, monthly product quantity change, the proportion of various costs and the basic quality of quota management. There are six common distribution methods:
(1) is not included in the product cost method;
(2) WIP is priced at fixed cost;
(3) Work-in-process is priced according to the direct material cost consumed;
(4) Equivalent rate of return method;
Extended data:
The calculation method of product production cost mainly includes:
1. Variety method: Variety method is a method of collecting production expenses and calculating product costs with product varieties as the object of cost calculation. Because the variety method does not need to calculate the cost in batches or steps, this cost calculation method is relatively simple.
Variety method is mainly suitable for large-scale single-step production enterprises. Such as power generation and mining. Or a small enterprise that does not need to calculate the cost of semi-finished products, although it belongs to multi-step production, such as small cement and brick making. The variety method generally calculates the product cost on a monthly basis, and there is no need to share the production cost between finished products and semi-finished products.
2. Batch method: Batch method is also called sequential method. It is a method to collect production expenses and calculate product cost by taking the batch or order of products as the object of cost calculation. Batch method is mainly suitable for multi-step production of single piece and small batch. Such as heavy machine tools, ships, precision instruments and special equipment.
The cost calculation period of batch method is not fixed. Generally, a production cycle (that is, the whole period from production to completion) is taken as the cost calculation period, and the product cost is calculated regularly. Because there is no finished product for unfinished work and no finished product after completion, finished products and finished products will not coexist at the same time, so there is no need to share production costs between finished products and finished products.
3. Step-by-step method: Step-by-step method is a method of collecting production costs and calculating product costs according to the production steps of products. Step-by-step method is suitable for batch or batch multi-step production. Such as machinery, textile, paper making, etc.
Because of the large production capacity, there are often finished products, semi-finished products and semi-finished products at a certain moment, so it is impossible to calculate the cost after all the products are completed. Therefore, the step-by-step method generally calculates the cost on a monthly basis, and the production cost should be shared between finished products and semi-finished products.