basis of proper conduct of business operations are the primary documents.These, in turn, build gain and loss account, the composition of both the production costs, primary or secondary, and the administrative goal.
Write-off of materials in production must take place in accordance with the Law, RAS and the Guidelines of the Ministry of Finance.
Material and production costs can be written off:
- From costing each unit of goods.
- Based on average cost.
- FIFO (when taken into account the cost of goods purchased in the first reporting period).
- In LIFO (when payment is made for the cost of goods purchased in recent years).
methods of writing off materilov in production are carried out in different ways, depending on which group records are materials and components, and how the company adheres to the accounting policies.
written off based on each unit (at cost)
Accounting leave materials in production at cost, taking into account each unit of the nomenclature is convenient when a small organization of the list of goods is not too extensive, and the consignment is small, the path of each partyeasily traced, and the prices of commodities are stable throughout the period of implementation.In this case, write-offs can occur in the most prices at which they are taken.There are two options, which may occur in the write-off of materials production:
- cost includes all the expenses that went to the purchase of goods.
- simplified method, where the cost is taken into account for the price of the contract, and all other expenses are written off on the basis of proportion to the amount of write-off of production materials (also at bargain prices).This method is used in the case where the amount of transport and procurement costs is difficult to identify.
Write-off of materials in the production of cost, calculated on the average
For each type of goods is determined by the amount that the sum of the balance at the beginning of the month, plus all receipts during the month (total cost) and divided by the quantity of materials (residual plusreceipt).Thus, identifying the average cost of the goods, multiply it by the number corresponding to the write-off period.The average cost will change as soon as the movement of goods occur.
The first option is called balanced assessment, the second - moving.On what is the purpose of using the method depends on the selection.When the data for the report prepared for any period, you need a balanced assessment, and it reverses materials in production, then use the moving cost estimate.
Despite the fact that the FIFO method is also used in two versions, the balance of stock of raw materials and (or) the material remains unchanged.Whereas spread the cost of the goods taken on procurement and released into production in accordance with a particular party, it would be difficult for a large list of nomenclature, especially if the flow of goods or raw materials occurs often enough.
This method is fixed in the accounting order of the head and is used in the enterprise for at least a year, according to the Regulations on Accounting (21), as depending on the movement of market prices, the difference between the purchase and the original cost accounting willaccordingly, reduce or increase profits.
inverse method reverses materials in the production of the category, which entered recently, and only then - those goods that have come before.
- Take as a basis for writing off the cost of raw materials, which were acquired for the first time, then (sequentially) comes the second party, etc.
- then blamed on the price of the last batch purchased.The result of the reporting period (month) is determined by summing the conventional balance and the arrival of the month, based on the price of the first purchase of materials.
Whatever the method of write-off of materials into production, no matter how produced a vacation and raw materials from the warehouse, it should execute the movement of goods, it is always based on primary documents, standardized and compiled in accordance with Article 9, paragraph 2, of the LawFederal Law № 129.