The phrase "cost of goods / products" has been heard by any normal person, but not everyone knows the specific meaning of this definition. The information contained in the article will be useful to people who wish to test their abilities in entrepreneurial activity but they lack professional knowledge.
Without the ability to independently correct the cost of products / services, a person is doomed to failure as a business entity.
The cost of production is the sum of all costs that must be spent to produce a unit of goods.
The cost is always expressed in monetary terms and is divided into the following types:
It is not difficult to independently perform simple arithmetic operations in order to calculate the cost of a product / service. However, to correctly determine the numbers with which it is necessary to make calculations - knowledge is required.
The cost of goods must include:
When calculating the personal overhead rate, it is necessary to analyze the annual data of the federal state statistical observation on the costs of production and sale of goods (works, services) in the form 5-z.
This legal document was approved by the State Statistics Committee of Russia dated September 9, 2003 No. 82.
The formula for the full calculation of the cost of production:
PS \u003d PRS + RR,
PRS - the cost of manufacturing a unit (batch) of products,
РР - expenses for the sale of products (packaging, logistics costs, promotion of goods).
For example: 1000 pieces of a product were produced. Production costs amounted to 250,000 rubles, the sale of goods - 150,000 rubles.
Total 400,000 rubles. The unit cost of a product is 400 rubles.
For what price to sell it, the "market" will tell you.
The algorithm for the classical calculation of the cost of products / services:
This way for every product.
For the calculation, a formula is used: the consumption rate of each element is multiplied with the cost of acquiring them.
Variable costs include materials, raw materials, the cost of all types of energy: fuel and lubricants (fuel and lubricants), electricity, components, payroll.
Other expenses include the cost of salaries, any repairs to buildings, equipment, management expenses, depreciation of fixed assets.
As a rule, accounting for other expenses is reflected in accounting documents: estimates of general business, a separate section, a group of workshops, general production costs.
Often, the classification of total costs for specific types of products is made in proportion to the selected distribution base, which can be chosen independently at the enterprise and fixed in the accounting policy.
Thus, the salary of full-time engineering and technical personnel, which was accrued for the manufacture of this product, can become the distribution base.
Before starting to manufacture any product, smart people calculate its cost (unit of product or batch of goods). The resulting cost indicator before the start of production of goods is called "normative".
Having calculated on paper the virtual (normative) cost of production, a person decides to start its production.
As a rule, the standard cost indicator rarely coincides 100% with the actual costs of manufacturing a unit / group of goods. These are the real costs incurred by the business entity during the production of goods and are called "actual".
In complex industries, employees of planning and economic bureaus consider the method of multi-stage distribution of costs, which is carried out in several stages, to be the most realistic.
Grouping expenses for all components of a single production organism, including the non-productive area (canteen, medical outpatient clinic, etc.). Example: the administration of the canteen makes up the costs: the cost of food, the salary fund of employees, the cost of energy resources (fuel and lubricants, electricity).
The costs of units that are not involved in direct production are attributed to production shops and departments. For example, the costs associated with the maintenance of the dining room will also apply to the divisions that manufacture products.
The costs credited to the production units are distributed to the manufactured products. So, after the redistribution of the costs of the canteen to the production units, the costs of maintaining the workshops are already transferred to the finished product.
In this case, the basis for the redistribution will be the accounting unit (man-hours) that were spent on the manufacture of each specific type of product, the cost of materials and raw materials.
The unit cost of a product is determined by dividing the total cost by the quantity (group/unit) of products produced. Anyone familiar with arithmetic can be convinced that finding the cost of production is not difficult.
Economic science divides costing into three types:
The first two calculations are made before the start of production, and the actual one is obtained after the end. technological process.
To carry out a real calculation, all costs must be summed up and divided by the selected quantity of the accounting unit: tons, pieces, packages, etc.
The costs include all costs for the production of an accounting unit:
The cost of a product (batch) = all costs for its manufacture / for the quantity of goods produced.
For example: 1000 units of products were produced, and 2 million rubles were spent on their manufacture. We divide two million rubles by one thousand products and get the result: the cost of one unit of production is equal to two thousand rubles.
Any production activities it is impossible to imagine without transportation costs: it is always necessary to bring / take something away. The proverb of our people says that "overseas a heifer is a half, but the ruble is transported." (Polushka - ¼ kopeck).
You can solve the need for transport in the following ways:
It is up to the entrepreneur to decide how to reduce transportation costs and thereby increase the rate of return after a comprehensive analysis of the production process, mathematical calculations and obtaining specific numerical indicators. And numbers, better than any words, are able to “speak” for one way or another.
You have learned how to professionally determine the cost, calculate any type of product / service. The well-being of your family depends to some extent on how you follow the rules for determining the cost.
After all, incorrect indicators of the cost of production 100% will lead to erroneous management decisions, which, sooner or later, will bankrupt the entrepreneur.
Therefore, future captains Russian economy, require engineering and technical personnel to present you with real plant performance.
In the approach to the organization of production lies the key to your prosperity.
Find out what the rate of return is from the video.
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Stage 1. All actual costs incurred during the reporting period on the basis of primary documents on the consumption of materials, the calculation and distribution of wages, the calculation of depreciation of fixed assets and intangible assets for cash costs are reflected in production accounts:
— D 20 K 10(51, 60, 69, 70, 96, etc.) - direct costs for the manufacture of products (performance of work, provision of services) of the main production - directly related to the manufacture of products, works, services.
— D 25 K 10(51, 60, 69, 70, 96, etc.) - maintenance and management costs structural unit organizations (workshop, production, workshop, etc.).
— D 26 K 10(51, 60, 69, 70, 96, etc.) - expenses for general maintenance and organization of production and management in general (general expenses).
— D 97 K 51(60, 76, etc.) - expenses incurred in the reporting period, but relating to future periods.
— D 96 K 10(23, 60, 69, 70, etc.) - expenses incurred at the expense of the created reserves (for the repair of fixed assets, payment for employee vacations, etc.).
Stage 2. Distribution of costs by destination after the end of the reporting period is carried out. First of all, the costs of auxiliary production are distributed. The actual cost of products (works, services) of auxiliary industries, reflected in the debit of account 23, is debited from the credit of account 23 to the debit of accounts 25, 26, 29.
Deferred expenses are debited from the credit of account 97 to the debit of accounts 25, 26 in the share related to the reporting period.
Reserves for future expenses and payments are being formed in accordance with planned calculations ( D 25 (26) K 96).
General production and general business expenses are distributed among certain types of products, works and services. The basis for the distribution of these costs can be: wages of production workers, direct costs, etc.
General business expenses may also be written off as a total amount from loan 26 in debit 20 if the actual cost of each type of product is not determined by the enterprise. General production costs are distributed similarly.
Expenses recorded on accounts 25 and 26 are written off at the end of the reporting period in debit 20 With credit 25, 26.
In accordance with PBU 10/99 organizations can adopt in their accounting policies the procedure for writing off general business expenses directly to debit 90 With loan 26.
Losses from marriage are also written off loan 28 in debit 20.
Upon completion of this stage, account 20 collects all direct and indirect costs for the production of products (works, services) for reporting period.
3 (final) stage. The actual production cost of manufactured products is determined. To calculate it, it is determined work in progress at the end of the period, that is, products that have not passed all stages of processing, testing, acceptance, incomplete.
To determine work in progress, it is necessary to know the number of products, parts, blanks remaining in the shops at the end of the period unfinished processing, and the procedure for evaluating these products, parts of blanks. This number of products are identified through an inventory of work in progress. The cost of work in progress is estimated by cost items depending on the type of production.
For the calculation of income tax (Article 319 of the Tax Code of the Russian Federation), the procedure for assessing work in progress is established by the taxpayer on one's own.
Actual production cost finished products(works, services) ( From g.p.) calculated in the following way: C g.p = C n.p.s. + Z f. - Oh w. - Oh br. - From n.a.c. ,
where From n.a.s. , From n.s.c.- the cost of work in progress, respectively, at the beginning and end of the reporting period, rubles; Z f. - actual production costs for the reporting period, rub.; Oh in - returnable waste, rub.; Oh br.- the actual cost of the final marriage, rub.
AT simplified version the actual production cost is calculated as follows:
The actual cost of finished products \u003d WIP in + costs of the reporting period (D 20) - WIP to, where
WIP in – WIP cost at the beginning of the reporting period; WIP to - WIP cost at the end of the reporting period.
The actual production cost of finished products is deducted from account 20, depending on the accepted accounting policy organization of the accounting option:
1st option - to account 43 "Finished products";
Option 2 - to account 40 "Output of products (works, services)".
Cost write-off.
Debit 90 "Sales" subaccount "Cost of sales" Credit 43 "Finished products"- written off the cost of finished products in planning and accounting prices.
Classification of accounts by purpose and structure.
Characteristics of matching accounts. Basic operations and accounting entries on the formation of financial results from the sale of products.
Operating accounts, business process accounts.
Comparing Accounts designed to calculate financial result, both individual business processes and the enterprise as a whole by comparing the debit and credit turnover recorded in these accounts. This is done by comparing the debit and credit turnover for a particular account. A feature of the structure of these accounts is the reflection of one accounting object in two different estimates: in one - on the debit, and in the other - on the credit of the account.
The accounts are divided into two subgroups:
1) Operational-resulting accounts are provided for summarizing information about individual processes of economic activity of the enterprise, as well as determining the financial result for each of them.
These include accounts: 90 "Sales", 91 "Other income and expenses".
According to the debit of these accounts, the following are taken into account: products sold, works, services; residual value of fixed assets and book value other current assets; costs associated with the disposal of assets, as well as fines, penalties, forfeits and paid interest. The credit of accounts 90 and 91 reflects proceeds and income from other operations. By comparing debit and credit turnovers, profit or loss from sales (account 90) and other operations (account 91) is determined.
These accounts do not have a balance; the balances received on them are written off monthly, credited to the financial results from sales and other operations from sub-account 9 to the debit or credit of the account 99 "Profit and loss".
These accounts take into account expenses and income from operations related to the sale of products, the performance of various works, the provision of services, the disposal of fixed assets, intangible assets, valuable papers, materials.
2) Financial results accounts are intended to determine the financial result of the economic activity of the organization. An example is an active-passive account 99 "Profit and Loss" and the account 98 "Deferred income" and account 848 "Retained earnings ( uncovered loss)". By account 99 reflected financial results(profit or loss) from the sale of various property items and other operations (operating and non-operating income reduced by the amount of operating and non-operating expenses). By account credit 99 Profits are fixed, losses are debited.
Comparing the turnover on debit (loss) and credit (profit), determine the final financial result: while credit balance shows profit, debit - loss.
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Product cost is the cost of purchasing it. In MyWarehouse this is the price from the document Acceptances or posting plus overhead.
The cost price is calculated according to the FIFO principle (“first in, first out”). If the current balance of goods was formed by several purchases with different prices, then when selling, the goods from the earliest acceptance will be written off first.
To calculate the cost in this way, it is important that the purchasing document always comes before the sales document. Otherwise, it will be the sale of the missing product and its cost will be zero.
Changing the purchase price in the product card does not affect the cost of goods that are already on the balance.
Overheads- the amount of additional costs for obtaining goods, in excess of the purchase price. They can be specified in the document Acceptance and they will increase the cost of each commodity commensurate with price, weight, or volume.
The goods assembled as a result of a technological operation will have a cost equal to the sum of the cost of materials plus production costs. If the finished product of those. operations are several different goods, then their cost will be the same.
Document Shipments and Retail displays the unit cost of the product and the sum of the cost for the entire quantity. If several identical items from different purchases are sold, the average unit cost will be shown.
The profit in the sales document is calculated as the difference between the sum of the sales price and the sum of the cost price.
Please note that if the quantity of goods in the document is highlighted in red, then you are selling more than you have in stock. The cost will be lower than the real one, and the profit will be too high.
By setting access rights, you can hide the display of cost prices in sales documents and reports from individual users.
Document Buyer Return returns the goods with the same cost price, but with a new date of arrival at the warehouse, this is important for calculating FIFO profit.
The price in the return document does not affect the cost of the product in any way, but only reflects the amount for which it was previously sold.
Moving goods from one warehouse to another does not affect its cost.
When selling services that require upfront costs, you can specify their cost price. Specify it in the document Sale, Shipment or Return (without reason). If the cost of services is always the same, set the value of the purchase price in the service card. It will be automatically inserted into the documents in the column Unit cost. More about the cost of services
In the report Remains and Profitability also shows the sum of the cost and the average cost of one unit of goods, which is considered as the sum of the cost divided by the remainder.
If you open the report detail Remains, then it is clearly visible which documents, with what cost price make up the current balance of the goods. This will make it easy to identify the purchase document in which an error was made and the price of the goods was not indicated.
Report detail Profitability will help to find sales in which the cost of goods is higher than the sale price or vice versa zero.
In report detail Turnovers the cost price of the goods is displayed in each document that changed its balance in the warehouse.
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In management accounting, the cost of goods produced English Cost of Goods Manufactured, COGM) is a calculation of the production costs that were incurred in the accounting period. In other words, this is the cost of products that were produced during the accounting period.
Industrial enterprises transform raw materials and materials into finished products through the use of labor and factory equipment.
For example, a steel plant produces pig iron by converting iron ore in a blast furnace. Preparing a profit and loss statement for industrial enterprise requires the calculation of the cost of production. At the same time, trading companies do not calculate the cost of manufactured products, since they do not produce products on their own, but buy them from other companies for the purpose of further resale. Such companies make a calculation of the cost of goods sold ( English Cost of Goods Sold).
As a rule, the calculation of the cost of goods manufactured becomes part of the calculation of the cost of goods sold, however, for management purposes, it can also be submitted as a separate report.
AT general view The formula for calculating the cost of goods sold can be represented as follows.
In essence, it is the sum of direct raw materials and materials costs, direct labor costs and general production overheads, which is adjusted for the net change in work in progress in the accounting period.
In this case, the direct costs of raw materials and materials consumed for the production of products in the accounting period are calculated according to the following formula.
At the same time, the net purchase of the main raw material is understood as the cost of its acquisition in the accounting period, minus returns (for example, due to inconsistency with the declared quality, manufacturing defects and damage during transportation) and discounts (for example, a discount can be provided for early payment).
The table shows an example of the calculation of the cost of production.
Direct costs for raw materials and materials = 14750 + 2800 - 3500 = 14050 c.u.
Cost of goods manufactured = (14050+5300+3700)+(5450-6280) = 22220 c.u.
As mentioned above, the cost of goods manufactured is part of the calculation of the cost of goods sold.
Their relationship can be reflected using the following formula.
It should be noted that these two indicators can differ significantly. For example, companies that produce products with a strong seasonal demand can produce products in stock for several weeks or even months without having sales. In this case, the cost of goods sold will be 0, although production will continue.
The cost price is a monetary reflection of the current costs of the enterprise for the production and sale of goods.
For the manufacturing sector, this indicator is the basis for pricing. The calculation base is the calculation of distribution costs. And you can simplify the process with the help of Excel.
It has already been noted that each company will have its own list of costing items. But in the existing frame, you can substitute any data, if necessary, change the formulas and get a ready-made calculation.
For an example of costing and selling price calculation, let's take the data from the following table:
Costing calculation scheme:
Based on the diagram, we will enter the data and formulas for calculation in an Excel spreadsheet.
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And the total amount of material (all dimensions in millimeters)
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The cost of production is one of the main qualitative indicators of the economic activity of the enterprise. The value of the cost directly depends on the volume and quality of products, as well as on the level of rational use of raw materials, equipment, materials and employees' working hours. The cost indicator is the base for determining the price of the manufactured goods. In the article we will talk about the specifics of calculating the cost indicator, as well as using examples, we will consider the methodology for determining the cost of production.
Under the cost understand the current costs incurred by the organization for the production and sale of products. At enterprises, it is customary to calculate two cost indicators - planned and actual. The value of the planned cost is determined based on the estimated average cost produced goods (performed works, services) for a certain period of time. To calculate the planned cost, indicators of the consumption rates of materials, raw materials, labor costs, and equipment used in the production process are used. The basis for calculating the actual cost is the actual production figures, which determine the costs of producing a unit of output (group of goods).
The monetary indicator of the cost price is determined by calculating the calculation - identifying the costs of producing a unit of output (a group of goods, a separate type of production). To calculate the cost, costing items are used, which determine the type of costs that affect the cost. The types of costing items depend on the characteristics of the type of goods produced, the specifics of the production process and economic branch in which the company operates.
In industrial practice, the concepts of production and full cost are used. To determine the production cost, such costing items are used as materials, raw materials, technological costs (fuel, energy, etc.), wages of production workers (including salary accruals), general production and general business expenses, as well as other production costs. To calculate the total cost of manufactured products, it is necessary to take into account not only production costs, but also commercial expenses. To this species include the costs of selling products, namely advertising, storage, packaging, salaries of sellers, and so on.
Costs that affect the cost of production may vary depending on the volume of goods produced. Based on this criterion, there are conditionally fixed and conditionally variable costs. As a rule, semi-fixed costs include general production and general business expenses, the level of which is not affected by the quantity of products produced. Labor costs, technological costs (fuel, energy) are considered conditionally variable, since the indicators of these types of costs can be increased (decreased) depending on the volume of production.
The cost of commercial products (services, works) in accounting can be determined from the information in the reports and balance sheets. The cost indicator is determined by excluding from the amount of costs for the production and sale of products the costs of non-production accounts, as well as the sum of balances, changes in balances and semi-finished products that are not included in the cost of production.
Let's say Teplostroy LLC is engaged in the production of electrical appliances. The reports of Teplostroy LLC for November 2015 reflected the following:
The unit cost of production will be:
Let's say Elektrobyt LLC is engaged in the production of electrical equipment.
Data for calculation:
At Elektrobyt LLC, direct costs include material costs; spare parts and semi-finished products; wages of production workers (incl. insurance premiums). The rest of the costs are indirect.
Calculation of direct production costs per unit of output:
(1,018,000 rubles + 215,000 rubles + 418,000 rubles) / 815 units = 2026 rub.
Calculation of indirect general business expenses per unit of production:
1800 rub. / 815 units = 2 rub.
Let's present the calculation of the cost price of a unit of electrical equipment produced in the form of a statement.
unit cost- this is valuation used in the production process of a unit of production (works, services):
To calculate the cost of a unit of production total amount costs for the reporting period are attributed to the number of products produced.
To calculate the planned cost per unit of production, a cost estimate is made. Depending on what costs are included in the cost of a unit of production, it can be production and complete.
Synonyms
Average cost
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The production of any type of product is inevitably associated with costs: for raw materials, electricity, transportation, remuneration of workers, transfer of taxes to the budget, and others. It is desirable to reduce them; it is impossible to do without them completely. And in order to determine how much money the company needs to reimburse at the end of the product production cycle, you need to calculate the cost using a simple formula. It is also necessary to determine the production as a whole.
Calculate the cost of a unit of goods, as well as, can be done both manually and in the application Microsoft Excel designed to work with spreadsheets. The latter option is preferable: once having created a template or using a ready-made one, the user can further calculate by simply substituting new data as an example. We will talk about how to calculate the unit cost of production in Excel.
SS= ΣP / O, where
- SS- cost;
- ΣP- the sum of all expenses incurred by the manufacturer;
- O- the total number of manufactured products in natural units (kilograms, meters, liters, pieces, and so on).
In the future, using the obtained value, you can calculate the market price of products, income and carry out other necessary actions. This can be done both in the same MS Excel and in specialized programs.
Important: the composition of the costs taken into account in the calculation of the cost of production should be determined taking into account the characteristics of production. There is no general list of articles, as with . For example, for the manufacture of plastic photo frames, you will need to purchase special glue, and for the production of ball bearings, grinding materials and lubricants. In the first case, they are not needed, as well as adhesives in the second.
Unlike, which represent a considerable difficulty for an unprepared user, even a beginner can calculate the cost of production in an Excel spreadsheet. Below is a small example of working with a spreadsheet.
Simplified procedure for calculating the cost of a product:
Advice: to check the correctness of the used formula, there is no need to double-click on the cells of the "Amount" column each time. You can simply mark the desired item with a single click: the order of arithmetic operations will be displayed in the upper "status bar" of MS Excel.
The results obtained can be copied to a reporting form or, as in the case of , continue calculations in a spreadsheet editor.
You can download a template for calculating the cost of a unit of production in production in the form of an Excel document from the link above.
You can download a ready-made example that allows you to understand in more detail the order of the operations performed at the link above.
The unit cost of finished products can be calculated not only in specialized programs, but also in the Microsoft Excel spreadsheet editor. The data is entered into the table in the appropriate columns, and then summarized. At the end, it is necessary to divide the gross cost of goods by the number of physical units, expressed in kilograms, pieces, liters, and so on.
The user can create a calculation template on his own or download an empty form and a calculation sample from the links above. Both with template and ready-made example it will work in Excel or any suitable editor. To see which formula was used in the calculation, just click once on the cell of interest and pay attention to the “status bar” located at the top.
