Calculation formula and account setting of production cost
The main task of cost accounting is to calculate production costs. We can understand the cost composition of the enterprise, and then make plans to save costs and improve profits. The production cost mainly includes labor cost, material cost and manufacturing cost. How to calculate the specific production cost?
Calculation formula of production cost
Production cost=direct labor+direct materials+manufacturing expenses
1. Direct materials include direct materials and auxiliary materials, mainly including raw materials, auxiliary materials, fuel and power.
2. Direct labor mainly includes wages, subsidies, welfare, bonuses, etc. of production personnel.
3. Manufacturing expenses refer to various expenses incurred in the workshop of an enterprise for organizing and managing production, except for materials and labor, including workshop management staff salaries (differentiated from production staff salaries), asset depreciation costs, maintenance costs and other manufacturing expenses, such as management staff office expenses, travel expenses, workers' labor insurance costs, etc.
Account subject for production cost accounting
The "Production Cost" account is used to calculate various production expenses incurred by an enterprise. This account has two secondary accounts: "Basic Production Cost" and "Auxiliary Production Cost".
The production cost can be accounted by setting a production cost account, which can be subdivided into basic production cost and auxiliary production cost account details. The manufacturing expenses are first collected and accounted in the manufacturing expense account, and then allocated to the cost of each product according to certain standards.
The cost accounting method can be determined according to the actual production mode of the enterprise, mainly including variety method, batch method, step-by-step method, etc. Now most enterprises implement computerization, and can use financial software to calculate, which is convenient and accurate.