under the cost of production to understand the monetary value of all costs incurred by the enterprise in its production.The calculation of this value is necessary for the formation of prices for finished products and management decision-making, aimed at increasing the profitability of the business entity.The cost price can be planned and actual.
first type of cost includes the maximum possible costs of the company for the manufacture of goods.They are calculated on the basis of plans drawn up for the coming periods.Actual cost - is the monetary value of funds spent on actually released goods.
inclusion in the accounting of inventory involved in the processes carried out on the basis of actually spent on the acquisition of financial resources.The actual cost of working capital is the monetary value of the costs incurred by the organization to purchase them.These include:
- amounts paid for tangible assets in accordance with the agreements;
- amounts spent by the organization for services such as information and consultation, provision of which is linked to the acquisition of material and production stocks;
- fees paid for customs clearance;
- non-refundable amount of taxes, payment of which is included in the cost of material assets;
- the cash equivalent of the services of intermediary organizations;
-Expenses incurred in harvesting and transportation stocks (material production) to the place of their use;
- costs incurred by the organization of the processing of current assets for acceptance of conditions necessary for use in industrial processes (packing, sorting);
- specific administration costs, directly related to the acquisition of inventory;
- other costs associated with the purchase of inventories.
actual cost of manufactured products is the organization of inventory, which is for sale.Registration and identification of costs incurred during the process cycle, a business entity is based on the order, which is set to identify the amounts of costs for certain types of goods.Thus, the actual cost of production, ready for sale, is the valuation of raw materials, natural and labor resources, capital assets and energy that the organization spent in the production process.
Accounting issued by the company can produce products in two ways.The criterion of reflection of finished products at the first of these is the actual cost of production.In the second method the goods are initially measured at cost planning or regulation.
actual production cost (finished) in the first method of reflection in the accounting registers enters the debit account 43 "Finished goods", in correspondence with the credit account 20 "Primary production".Organizations of this type of calculation of output is used most often.
actual costs incurred by a business entity in the production of goods can be counted only after the reporting month, when it is determined as the direct and indirect costs.Therefore, the cost of products sold in the same period, can not be calculated.To avoid this inconvenience, there are certain ways of writing off the finished product:
- at the cost of one of its units;
- at average cost;
- using the FIFO method;
- using the LIFO method.