How to write the accounting entry of manufacturing cost carry forward
Accounting items such as "production cost" and "overhead" may be involved when carrying forward costs in the manufacturing industry. How should accountants make accounting entries when carrying forward costs in the manufacturing industry?
Accounting entry of manufacturing carry forward cost
1. When purchasing
Debit: raw materials/goods in stock
Tax payable - VAT payable (input tax)
Credit: cash on hand/bank deposit/accounts payable
2. When collecting materials
Debit: production cost
Credit: raw materials
3. When withdrawing wages
Debit: production cost/manufacturing expense
Credit: payroll payable - wages
4. Water and electricity cost, machine material consumption, etc
Debit: manufacturing expenses
? Credit: cash on hand/bank deposit/accounts payable
5. Accrued depreciation
Debit: manufacturing expenses (for workshop)
Administrative expenses (used by management department)
Sales expenses (used by the sales department)
Credit: accumulated depreciation
6. Sales revenue
Debit: cash on hand/bank deposits/accounts receivable
Credit: main business income
? ? ? Tax payable - VAT payable (output tax)
7. At the end of the month, carry forward manufacturing expenses
Manufacturing expenses can be allocated according to material consumption, labor cost or machine hours.
For example, when allocating by material consumption:
Distribution rate of manufacturing expenses of a product=material consumption of the product/total material consumption of the current period
Allocated manufacturing expenses of a product=distribution rate of manufacturing expenses of the product × total manufacturing expenses of the current period
Debit: production cost - xx products
Credit: manufacturing expenses
8. At the end of the month, carry forward finished receipt products
Debit: goods in stock
Credit: production cost
9. At the end of the month, carry forward the cost of goods sold in the current month
Debit: main business cost
Credit: inventory goods
The production costs of manufacturing enterprises generally include
Material cost, fuel cost, power cost, employee compensation, depreciation cost, interest expense, taxes, other expenses, period expenses, etc. Direct materials and direct labor are directly recorded into the "production cost" account when incurred; when incurred, they are first recorded into the "overhead" account, and then transferred to the "production cost" account after distribution at the end of the period.