The manufacturing expenses incurred by the company generally refer to the water, electricity and depreciation expenses of the production workshop. How should the manufacturing expenses be accounted for?
How to make daily accounts for manufacturing expenses?
1. In case of indirect consumption in the production workshop of the enterprise, the accounting treatment is as follows:
Debit: manufacturing expenses
Credit: raw materials
2. The accounting treatment of the depreciation of fixed assets accrued by the enterprise workshop is as follows:
Debit: manufacturing expenses
Credit: accumulated depreciation
3. The accounting treatment of water, electricity, repair and office expenses incurred in the production workshop of the enterprise is as follows:
Debit: manufacturing expenses
Credit: bank deposit
4. The salary and accounting treatment of workshop management personnel are as follows:
Debit: manufacturing expenses
Credit: payroll payable
5. The accounting treatment of the losses caused by seasonal shutdown of the enterprise is as follows:
Debit: manufacturing expenses
Credit: raw materials
Payroll payable
bank deposit
6. At the end of the month, the manufacturing expenses are allocated in proportion and included in the cost of related products. The accounting treatment is as follows:
Debit: production cost -- basic production cost
Production cost - auxiliary production cost
Credit: manufacturing expenses
Does the manufacturing expense need to be carried forward to this year's profit at the end of the month?
At the end of the month, the enterprise should carry forward all the manufacturing expenses to the production cost of the enterprise. The manufacturing expenses are not directly carried forward to the profit of the current year, but ultimately carried forward to the profit account of the current year through the production cost.
What is the accounting treatment of manufacturing expense allocation?
Debit: production cost
Credit: manufacturing expenses
(No matter what method is used for allocation of manufacturing expenses, the entries carried forward are the same, but the amount of expenses allocated to each cost object is different for different allocation methods.)
When overhead is incurred
Debit: manufacturing expenses
Credit: raw materials/cash on hand/bank deposits/payroll payable/accumulated depreciation/accumulated amortization
Allocation of overhead
Debit: production cost
Credit: manufacturing expenses
Collection category:
The enterprise should set up a "manufacturing expense" account for general classification accounting. The account shall set up a subsidiary account according to different production units, and a column or special account shall be set up in the account according to the expense items to reflect the occurrence of various manufacturing expenses of the production unit.
If the auxiliary production workshop only produces a single variety or provides only one kind of labor service and the amount of manufacturing expenses is small, in order to reduce the transfer procedures, various manufacturing expenses incurred can also be directly recorded into the "auxiliary production cost" account without accounting through the "manufacturing expense" account. The "overhead" account belongs to the cost expense account. The debit registers and collects the overhead incurred, and the credit reflects the allocation of the overhead. There is no balance at the end of the month.
What is the main accounting treatment of manufacturing expenses?
(1) The machine and material consumption in the workshop is debited to this account and credited to "raw materials" and other accounts.
(2) The salary of workshop management personnel and other employee compensation incurred shall be debited to this account and credited to the "employee compensation payable" account.
(3) The depreciation of fixed assets accrued by the workshop is debited to this account and credited to the "Accumulated Depreciation" account.
(4) The office expenses, utilities, etc. paid by the production workshop shall be debited to this account and credited to "bank deposit", etc.
(5) In case of seasonal shutdown loss, debit this account and credit "raw materials", "payroll payable", "bank deposit" and other accounts.
(6) Allocate manufacturing expenses to related cost accounting objects, debit "production cost (basic production cost, auxiliary production cost)", "labor cost" and other accounts, and credit this account.