How to make accounting entries for actual cost material carry forward receipt
When the company purchases raw materials and uses the actual cost method for accounting, they can be accounted through the in transit materials account. How to make accounting entries when carrying forward material receipt?
Actual cost material carry forward receipt entry
When the actual cost method is adopted, the raw materials purchased are:
Debit: materials in transit
Taxes payable - VAT payable (input)
Credit: bank deposit
？ ？ ？ ？ Accounts payable, etc
During acceptance and warehousing:
Debit: raw materials
Credit: materials in transit
The actual cost method takes the production cost incurred in the production of intermediate products as its internal transfer price. Because the actual cost is well documented and has certain objectivity, it is simple and feasible. However, to some extent, the achievements or shortcomings of the departments providing products or services will be transferred to the user departments, which is not conducive to the assessment of the responsibility center.
Accounting treatment of materials in transit
Materials in transit refer to the purchase and warehousing of various materials (i.e. materials in transit) purchased by enterprises that have not yet arrived or have not yet been accepted and warehoused. They are generally used by commercial enterprises.
(1) When an enterprise purchases materials and commodities, it debits the "materials in transit" title according to the amount that should be included in the purchase cost of materials and commodities, debits the "taxes payable - VAT payable (input tax)" title according to the deductible VAT, and credits the "bank deposit", "notes payable" and other titles according to the amount actually paid or payable.
(2) If the purchased materials are delayed in payment beyond the normal credit conditions (such as the purchase of materials by installment) and are of financing nature in essence, the "materials in transit" title shall be debited according to the present value of the purchase price, the "taxes payable - value-added tax payable (input tax)" title shall be debited according to the deductible VAT, and the "long-term payables" title shall be credited according to the amount payable, Debit the "unconfirmed financing expenses" account.
(3) When the purchased materials and goods arrive at the warehouse for acceptance, debit the "raw materials", "inventory goods - purchase price" and other accounts, and credit the "materials in transit" account.
If the inventory goods are accounted by selling price, the "inventory goods" account is debited by selling price, and the "materials in transit" account is credited by purchasing price. The difference between the purchase price and the selling price is debited or credited to the "purchase sales price difference of goods" account.
The ending debit balance of this account reflects the purchase cost of materials and goods in transit that have been paid, issued or accepted by the enterprise, but have not yet arrived or received acceptance.
