Currently for purposes accounting the following methods for estimating the cost of inventory items are used:
This is due to the desire to bring domestic accounting standards closer to international ones. However, for tax purposes, four methods of estimating inventories are still used.
Let us briefly describe each of the methods.
At the cost of each unit inventories used by the organization in a special manner (precious metals, precious stones, etc.), or reserves that cannot be in the usual way replace each other. This method is used in exceptional cases or with a small range of goods and materials. It is characterized by particular labor intensity, provided that it is used in enterprises with a large range.
For example.
The company produces cabinet furniture. The balance at the beginning of the month of stained glass is 5 sheets in the amount of 125,000.00 rubles.
Purchased during the month: 3 sheets of stained glass in the amount of 84,000.00 rubles.
Transportation costs are included in the cost and amount to 3000 rubles.
During the month, 2 sheets were used from the balance, 1 sheet from the receipt of stained glass.
Let's determine the actual cost of the balance: 125,000 / 5 = 25,000 rubles per sheet;
Let's determine the actual cost of receipt: (84,000 + 3,000) / 3 = 29,000.00 rubles per sheet;
The cost of raw materials consumed in the production process per month will be: 25,000 * 2 + 29,000 = 79,000 rubles.
As the example shows, when applying this method, there is no need to make additional calculations. If it is possible to determine exactly which materials are used in production, this method has advantages, since materials are written off at their true cost, without deviations.
Average cost calculation is made by dividing the total cost of a group (type) of stocks by their number, consisting of the cost and the amount of the balance at the beginning of the month and the stocks received during the month. This method is the most common, included in standard versions of accounting programs.
For example, an organization is engaged in the production of cabinet furniture. The balance of chipboard at the beginning of the month is 300 sheets in the amount of 600,000.00 rubles.
During the month, the receipt was made in several batches, including:
Let's calculate the average cost of one chipboard sheet: (600,000 + 180,000 + 105,000) / (300 + 100 + 50) = 885,000 / 450 = 1,966.67 rubles per sheet.
Let's calculate the cost of chipboard written off for production: 410 * 1,966.67 = 806,334.70 rubles.
The balance of chipboard at the end of the month will be 300 + 150 - 410 = 40 sheets in the amount of 40 * 1,966.67 = 78,666.80 rubles.
P ri FIFO method Inventories that are the first to go into production (sales) are valued at the cost of the first inventory by the time of acquisition, taking into account the cost of inventory at the beginning of the month. Thus, the write-off sequence when applying this method is as follows: first, the balances at the beginning of the period are written off, then the first batch, then in order. Otherwise, this method can be called pipelined. With rising prices for purchased materials, the cost of purchased products is minimal, while the estimate of reserves and profits is maximum. And when prices fall, on the contrary, stocks and profits are minimized.
When applying the FIFO method when calculating the cost of materials released into production, you can use one of the following methods:
The first method is based on writing off the cost of each batch in order: first, the cost of the balance is written off, if the amount of written-off materials is more than the balance, the first incoming batch is written off, then the second and subsequent ones. The balance of materials is determined by subtracting the cost of written-off materials from the total cost of materials received during the month (taking into account the balance at the beginning of the month).
The second method is based on determining the balance of materials at the end of the month at the price of the latest purchases. The cost of materials written off to production is determined by subtracting the value obtained from the total cost of materials received during the month (taking into account the balance at the beginning of the month).
Using the conditions of the previous example, we will calculate using the FIFO method using two options.
Option 1:
Recorded for production:
300 sheets in the amount of 600,000.00 rubles; 100 sheets in the amount of 180,000.00 rubles; 10 sheets for the amount of 21,000.00 rubles. Total: 801,000.00 rubles. The balance at the end of the month is 40 sheets in the amount of 84,000.00 rubles.
Option 2:
The balance of chipboard at the end of the month is 40 sheets (300 + 150 - 410), the entire balance is from the second batch. Accordingly, the value of the balance is: 84,000.00 rubles;
Calculate the cost of decommissioned chipboard: 600,000 + 180,000 + 105,000 - 84,000 = 801,000.00
The average cost of one chipboard sheet written off for production is 801,000 / 410 = 1953.66 rubles per 1 sheet.
With the LIFO method Inventories that are the first to go into production (sales) are valued at the cost of the last ones in the acquisition sequence. The LIFO method is the opposite of the FIFO method. In conditions of rising prices - the minimum estimate of stocks and profits. In the face of falling prices - maximizing the assessment of stocks and profits.
There are two ways to calculate the cost of materials put into production using the LIFO method. The methods are similar to those described above for the FIFO method, with the difference that for the first calculation option the cost of the last incoming batch is used, then the batches are written off in the reverse order. The value of the earliest batch purchased is used to determine the balance at the end of the period. For brevity, we use the last method of calculation.
The conditions of the example are the same.
The balance of chipboard at the end of the month is transferred from the balance at the beginning of the month, since 410 sheets of chipboard were used for production, of which 50 sheets from the last batch, 100 sheets from the first batch, 260 sheets from the balance at the beginning of the month.
So, the balance will be 40 sheets at a price of 2,000 rubles per sheet, in the amount of 80,000.00 rubles.
Let's determine the cost of chipboard used for production: 600,000 + 180,000 + 105,000 - 80,000 = 805,000.00
The average cost of 1 sheet written off for the production of chipboard is 1963.41 rubles.
Let's make a reservation that in practice there are two options for applying the methods of average estimates of the actual cost of goods and materials when released into production or written off for other purposes:
The first one involves a weighted estimate based on the average monthly actual cost, in this case the calculation includes the quantity and cost of materials at the beginning of the month and all receipts for the month (reporting period).
The second method is based on determining the actual cost of the material at the time of its issue (rolling estimate), in this case, the calculation of the average estimate is based on the quantity and cost of materials at the beginning of the month and all receipts until the moment of issue.
Thus, the choice of the date on which the valuation of goods and materials is made determines the difference between the weighted and rolling valuation.
The use of a moving estimate should be economically justified and provided with appropriate computer technology.
Options for calculating the average estimates of the actual cost of materials for the purposes of accounting and tax accounting should be disclosed in accounting policy organizations.
Let's compare the results:
| Index | Average cost method | FIFO method | LIFO method |
| Written off for production (rub.) | 806 334,70 | 801 000,00 | 805 000,00 |
| Average cost of write-offs in production (rub.) | 1 966,67 | 1953,66 | 1963,41 |
| Balance at the end of the month (rub.) | 78 666,80 | 84 000,00 | 80 000,00 |
| Average cost of materials in the balance | 1 966,67 | 2 100,00 | 2 000,00 |
In the above example, there is no clear trend towards differences in the values obtained when using various methods for assessing the inventory, since the conditions of the example provide for fluctuations in the purchase price of materials. So the cost of the balance at the beginning is 2,000.00 rubles, in reporting period materials were purchased at a price of 1,800.00 and 2,100.00 rubles.
Under the condition of a steady rise in prices, the most profitable, no doubt, is the LIFO method, since the cost of decommissioned goods and materials increases, and profit, accordingly, decreases. When prices decline, the opposite is true when applying the FIFO method. In order to avoid jumps, accountants, as a rule, choose the method of writing off inventories at average cost for both accounting and tax purposes. This method is time-tested and does not cause difficulties in calculations, and also gives averages for any price changes in the market.
In order to make the right management decisions in the field of inventory management, there is a need to choose a method for assessing inventory for accounting purposes.
For tax purposes, one or another method of valuation of materials is used to optimize taxation, in particular, to reduce income tax payments, provided that the method that provides for write-off for reduction is chosen. tax base the highest possible cost.
Consequences of applying different methods of stock valuation for accounting purposes and for taxation purposes.
How to take into account the differences arising from the application of different methods of valuation of reserves for accounting purposes and for taxation purposes. In this case, it becomes necessary to apply the requirements of PBU 18/02.
So the organization uses different methods inventory estimates for accounting purposes and for taxation purposes. What are the differences?
In the event that the amount of expenses reflected in the accounting records exceeds the amount of expenses accepted for taxation, a deductible temporary difference arises, and, as a result, a deferred tax asset(SHE IS). If the amount of expenses reflected in accounting is less than the amount of expenses accepted for calculating income tax, a taxable temporary difference arises, and, as a result, a deferred tax liability. Consider the occurrence of differences based on our example data.
When calculating by the average cost method, the amount attributable to the cost is 806,334.70 rubles, with the FIFO method - 801,000.00 rubles, with the LIFO method - 805,000.00 rubles.
| Applied assessment of IMF for the purposes | Differences arising | SHE/IT | |
| Accounting | Taxation | ||
| By average cost 806 334,70 | Using the FIFO method 801 000,00 | Deductible temporary difference | SHE IS |
| By average cost 806 334,70 | Using the LIFO Method 805 000,00 | Deductible temporary difference | SHE IS |
| Using the FIFO method 801 000,00 | By average cost 806 334,70 | IT | |
| Using the FIFO method 801 000,00 | Using the LIFO Method 805 000,00 | Taxable temporary difference | IT |
The best method for estimating inventories for the purposes of tax accounting in organizations using the simplified taxation system is the FIFO method, since the method for estimating inventories at an average cost for the purposes of tax accounting for expenses under the simplified tax system does not allow compliance with the requirements of Art. 346.17 of the Tax Code of the Russian Federation, in terms of control of payment of expenses. At the same time, the organization retains the opportunity to keep records of the inventory "according to the average" in accounting.
Of course, the occurrence of differences between accounting and tax accounting leads to a complication of the accounting process, as a result, to a greater number of errors. However, market conditions, the presence of multiple user approaches financial statements(for example, it is beneficial for the organization to show profit in order to pay dividends in a larger amount) and last changes legislation increases the number of situations where these differences arise. In addition, if the range of materials (goods) is small and the accountant has the possibility of batch accounting, you should think about whether the weighted average method is convenient and practical from the point of view of taxation.
Disposal valuation method material and production stocks (IPZ) of the organization - one of its elements. We talked about the calculation of the cost of MPZ using the FIFO method in ours. However, the most common way to assess the disposal of inventories is to estimate the average cost. This method can be used both in accounting and in tax accounting (clause 4 of PBU 1/2008, clause 16 of PBU 5/01, clause 8 of article 254, clause 3 of clause 1 of article 268, clause 2 paragraph 2 of article 346.17 of the Tax Code of the Russian Federation).
Let's give an example of calculation in our material for the average cost method.
The calculation of the average cost of goods or materials for a month involves dividing the total cost of a group (type) of stocks by their quantity, which is made up of the cost and amount of the balance at the beginning of the month and the stocks received during this month, respectively (clause 18 PBU 5/01).
In this case, the calculation of the average cost can be made in two versions (clause 78 of the Order of the Ministry of Finance of December 28, 2001 No. 119n):
A weighted estimate involves finding the average cost per month based on the quantity and cost of materials at the beginning of the month and all receipts for the month.
And with a moving average, the calculation is made for each moment of disposal of the inventory. Accordingly, the moving average is calculated based on the quantity and cost of inventories at the beginning of the month and the receipt of inventories until the moment of issue.
Let us give an example of calculating the average weighted estimate of the disposal of the inventory on conditional digital data.
Based on the balance of the inventory as of March 01, 2018 and the receipts for three batches for March, the average cost of an inventory unit is 55.9 rubles per piece. (18,831.3 rubles / 337 units).
Accordingly, the cost of disposal of 216 pcs. Inventory for March 2018 is 12,074.4 rubles. (216 pieces * 55.9 rubles / piece). Therefore, the value of the remainder is 121 units. The MPZ as of March 31, 2018 is 6,756.9 rubles. (18,831.3 rubles - 12,074.4 rubles).
Clause 16 PBU 5/01 and clause 73 Guidelines for accounting of inventories, approved by order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n, the following methods for estimating inventories during release into production and other disposal are established:
at the cost of each unit;
at the average cost
· according to the FIFO method (according to the cost price of the first in time acquisition of materials);
· according to the LIFO method (at the cost price of the most recent acquisition of materials).
It should be noted that for accounting purposes, an organization may use different write-off methods for different groups of inventories.
Let's take a closer look at each of these methods.
Write-off of inventories at the cost of each unit
The method of writing off materials at the cost of each unit is convenient for use in cases where the organization uses a small range of materials in production and it is easy to track which batch the materials are written off from, and their prices remain fairly stable over a long period. In this case, accounting is kept for each batch of materials separately, and materials are written off exactly at the prices at which they are accepted for accounting. Paragraph 74 of the Methodological Guidelines for Accounting for Inventories proposes two options for writing off materials at the price of each unit:
1. The unit cost includes all costs associated with the acquisition of these inventories. This method is used when it is possible to accurately determine the amounts of acquisition costs that relate to different materials.
2. A simplified method in which the unit cost includes only the cost of inventories at contract prices, and transportation and other costs associated with their acquisition are accounted for separately and written off in proportion to the cost of materials written off to production at contract prices. This method is used when it is impossible to determine exactly what share of the transportation and procurement costs relates to each specific batch of purchased materials.
Example 1
1 option
At the beginning of the month, the Etalon organization had paint residues in the amount of 120 kg in the amount of 3600 rubles. at actual cost.
The first batch - 150 kg, the cost of the batch - 3200 rubles, transport costs amounted to 1000 rubles;
The second batch - 200 kg, the cost of the batch - 5600 rubles, transport costs amounted to 1000 rubles.
Accounting for materials is carried out with the inclusion of transport and procurement costs in the actual cost. For ease of calculation, all amounts are given without VAT.
The actual cost of paint is:
balance at the beginning of the month: 3600 / 120 = 30 rubles;
first batch: (3200 + 1000) / 150 = 28 rubles. for 1 kg;
second batch: (5600 + 1000) / 200 = 33 rubles. for 1 kg.
During the month spent:
The cost of the used paint is:
100 × 30 + 90 × 28 + 120 × 33 = 9480 rubles.
Example 2
Option 2
Entity A uses a simplified write-off of materials at unit cost.
At the beginning of the month, organization "A" has 120 kg of paint in the amount of 3,100 rubles. at bargain prices. Transportation costs - 500 rubles.
Within a month, two batches of paint were purchased:
1) 150 kg, the cost of the batch is 3200 rubles. Transportation costs - 1000 rubles;
2) 200 kg, the cost of the batch is 5600 rubles. Transportation costs - 1000 rubles.
The prime cost of paint at contractual prices is:
balance at the beginning of the month: 3100 / 120 = 25.83 rubles;
first batch: 3200 / 150 = 21.33 rubles;
second batch: 5600 / 200 = 28 rubles.
Released for production within a month:
100 kg of paint from the balance at the beginning of the month;
90 kg of paint from the first batch;
· 120 kg of paint from the second batch.
The cost of paint dispensed into production per month at contractual prices is: 100 kg × 25.83 rubles. + 90 kg × 21.33 rubles. + 120 kg × 28 rubles. = 8132.70 rubles.
Calculate the percentage of TZR:
(500 + 1000 + 1000) / (3100 + 3200 + 5600) × 100 = 21.01%.
The amount of TZR attributable to the increase in the cost of paint released into production:
RUB 8132.70 × 21.01% = 1708.68 rubles.
The main advantage of the inventory write-off method at the cost of each unit is that all materials are written off at their real cost without any deviations. However, we repeat, this method is applicable only in cases where the organization uses a relatively small range of materials and when it is possible to determine exactly which materials are written off.
In cases where it is impossible to accurately track the materials from which particular batch were released into production, it is advisable to use one of the three methods described below.
Write-off of materials to production at average cost
The method of writing off inventories at the average cost is as follows. For each type of material, the average unit cost is determined as the quotient of the total cost of these materials (the sum of the cost of materials at the beginning of the month and those received during the month) by the quantity of these materials (the sum of the balance at the beginning of the month and those received during the month).
The cost of materials written off to production is determined by multiplying their quantity by the average cost. The cost of the balance at the end of the month is determined by multiplying the amount of material on the balance by the average cost price. Thus, the average unit cost of materials can vary from month to month. The balance of inventory accounting accounts is reflected at the average cost.
Example 3
Suppose that in the organization "Etalon" at the beginning of the month the rest of the fabric is 1,500 m, the average cost is 95 rubles. for 1 m. Within a month, the following fabric was received:
1st batch: 1000 m at a price of 89.50 rubles. for 1 m;
2nd batch: 500 m at the price of 100 rubles. for 1 m;
3rd party: 1200 m at the price of 80 rubles. for 1 m.
Within a month, 3500 m of fabric was spent on the production.
The average cost of fabric is:
(1500 × 95 + 1000 × 89.50 + 500 × 100 + 1200 × 80) / (1500 + 1000 + 500 + 1200) = 90 rubles. for 1 m.
The cost of the fabric written off for production is: 3500 × 90.00 = 315,000 rubles.
The rest of the fabric at the end of the month: (1500 + 1000 + 500 + 1200) - 3500 = 700 m.
The cost of the rest of the fabric at the end of the month: 700 × 90.00 = 63,000 rubles.
Note!
In the letter of the Ministry of Finance of the Russian Federation of March 10, 2004 No. 16-00-14 / 59 “On accounting for inventories”, an explanation is given on the application of methods for average estimates of the actual cost of materials:
“In accordance with the Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n “On Approval of the Methodological Guidelines for Accounting for Inventories”, paragraph 78, the use of methods of average estimates of the actual cost of materials released into production or written off for other purposes, provided for in subparagraphs “b”, “c”, “d” of paragraph 73 of these Guidelines, can be carried out in the following ways:
Based on the average monthly actual cost (weighted estimate), which includes the quantity and cost of materials at the beginning of the month and all receipts for the month (reporting period);
· by determining the actual cost of the material at the time of its issue (rolling estimate), while the calculation of the average estimate includes the quantity and cost of materials at the beginning of the month and all receipts until the moment of issue.
The use of a moving estimate should be economically justified and provided with appropriate computer technology.
Thus, there are no restrictions, with the exception of a purely economic factor arising from the “principle of rational accounting”, in the application of these options for average estimates.
The difference between a weighted and a rolling valuation lies in the choice of the date on which the valuation of raw materials and materials is made. When using a weighted estimate, it is made on reporting date, and when using a moving estimate - at the time of writing off raw materials and materials to production. Let us explain what has been said with an example.
Example 4
Figures are without VAT.
At the beginning of the month, the accounting of the Etalon organization included the remnants of fabric for the production of garments in the amount of 500 m in the amount of 25,000 rubles. The average cost of 1 m of fabric is 50 rubles.
Within a month, the warehouse of Etalon LLC received:
2nd: 100 m of fabric at a price of 45 rubles. in the amount of 4500 rubles;
10th: 200 m of fabric at a price of 52 rubles. in the amount of 10,400 rubles;
25th: 300 m of fabric at a price of 47 rubles. in the amount of 14,100 rubles.
Within a month, 700 m of fabric were put into production, including:
17th - 400 m;
27th - 300 m.
1. Organization "Etalon" applies a weighted assessment (assessment is made at the reporting date).
Let us determine the quantity and cost of fabric received during the month, taking into account the quantity and cost of fabric at the beginning of the month:
500 + 100 + 200 + 300 = 1100 m.
25,000 + 4,500 + 10,400 + 14,100 = 54,000 rubles.
The average price of 1 m of fabric per month will be:
54 000 rub. / 1100 m = 49.09 rubles.
The cost of fabric written off during the month:
700 m × 49.09 rubles = 34,363 rubles.
The rest of the fabric at the end of the month: 1100 - 700 = 400 m.
The cost of the rest of the fabric at the end of the month: 54,000 - 34,363 \u003d 19,637 rubles.
RUB 19,637 / 400 m = 49.09 rubles.
2. The Etalon organization applies a rolling estimate (the estimate is made on the date the materials are written off to production).
The first batch of fabric was put into production on the 17th, therefore, when using this method, you should determine the average cost of the fabric on this date.
Let's determine the quantity and cost of the incoming fabric (taking into account the balance at the beginning of the month) on the 17th day:
500 + 100 + 200 = 800 m.
25,000 + 4,500 + 10,400 = 39,900 rubles
The average cost of 1 m of fabric: 39,900 rubles. / 800 m = 49.88 rubles.
On the 17th, 400 m of fabric were released into production, its cost will be:
400 m × 49.88 rubles. = 19,952 rubles.
Now you should determine the quantity, cost and average cost of 1 m of fabric left in stock on the 18th:
800 - 400 = 400 m.
39,900 - 19,952 = 19,948 rubles.
RUB 19,948 / 400 m = 49.87 rubles.
The next batch of fabric was put into production on the 27th, but on the 25th the warehouse received another batch of fabric in the amount of 300 m for the amount of 14,100 rubles. Therefore, it is necessary to determine the average cost of 1 m of fabric, which has developed on the 27th.
Let's determine the quantity and cost of 1 meter of fabric received from the 18th to the 27th (taking into account the balance on the 18th):
400 + 300 = 700 m.
19,948 + 14,100 = 34,048 rubles
The average cost of 1 m of fabric at the time of release of the next batch will be:
RUB 34,048 / 700 m = 48.64 rubles.
The cost of fabric released for production on the 27th will be:
300 m × 48.64 rubles. = 14,592 rubles.
Remaining fabric at the end of the month: 700 - 300 = 400 m.
The cost of fabric at the end of the month: 34,048 - 14,592 = 19,456 rubles.
The average cost of 1 m of fabric at the end of the month (at the beginning of the next month):
RUB 19,456 / 400 m = 48.64 rubles.
End of example.
Note that the choice of one or another method of assessment is influenced by the order of workflow established in the organization.
Write-off of materials to production using the FIFO method
This method is based on the assumption that materials are released into production during the reporting period in the order in which they were purchased, i.e. materials that are first released into production should be valued at the cost of the first purchases in time. When applying this method, the assessment of materials in the warehouse of a manufacturing organization at the end of the reporting period is carried out at the cost of the latest purchases, and the cost of finished products takes into account the cost of the earliest purchases.
If the first batches of materials by the time of purchase are cheaper, and the subsequent ones are more expensive, then the use of the FIFO method leads to an increase in the balance sheet profit, since the materials are written off to production at a lower cost, which reduces the cost of finished products, but the balance of materials in the warehouse is reflected at higher price.
If the prices for materials tend to decrease, then the application of this method leads to an increase in the cost of production and, accordingly, to a decrease in the balance sheet profit.
There are two ways to determine the cost of materials written off to production using the FIFO method:
1. First, materials are written off at the cost of the first purchased lot, if the amount of written-off materials is more than this lot, the second one is written off, etc. The balance of materials is determined by subtracting the cost of written-off materials from the total cost of materials received during the month (taking into account the balance at the beginning of the month).
2. The balance of materials at the end of the month is determined at the price of the last ones at the time of purchase. The cost of materials written off to production is determined by subtracting the value obtained from the total cost of materials received during the month (taking into account the balance at the beginning of the month).
Example 5
In the example, the figures are given without VAT.
At the beginning of the month, Electron LLC recorded the remains of black-and-white picture tubes in the amount of 28 pieces at a price of 892.86 rubles. per piece in the amount of 25,000 rubles. Within a month, Elektron LLC received kinescopes:
1st batch: 10 pieces at a price of 930 rubles;
2nd batch: 20 pieces at a price of 900 rubles;
3rd batch: 15 pieces at a price of 830 rubles.
Within a month, 60 kinescopes were put into production.
For greater clarity, we summarize all the data in a table.
Initial data
|
Number of units |
Price per unit, rub. |
Amount, rub. |
|
|
Balance at the beginning of period |
|||
|
Received for the period, total |
|||
|
including: |
|||
|
1st batch |
|||
|
2nd party |
|||
|
3rd party |
|||
|
Total including the balance at the beginning of the period |
|||
|
Released for production |
|||
|
Balance at the end of the period |
When using this method, the actual cost of kinescopes put into production will be:
1 option
A total of 60 kinescopes were put into production, and first the rest of the kinescopes at the beginning of the month (28 pieces) was completely written off, then the first incoming batch (10 pieces), the second (20 pieces), and the remaining quantity (2 pieces) were written off from the third batch. The cost of kinescopes put into production is:
28 pieces × 892.86 rubles. + 10 pieces × 930 rub. + 20 pieces × 900 rubles. + 2 pieces × 830 rub. = 53,960 rubles.
The actual cost of one kinescope is: 53,960 rubles / 60 pieces = 899.33 rubles.
The quantitative balance of kinescopes in the warehouse is: (28 + 45) - 60 = 13 pieces.
The cost of the rest of the kinescopes in stock: 13 pieces × 830 rubles. = 10,790 rubles.
As you can see, with this option, it is necessary to determine exactly which kinescopes from which batch make up the balance at the end of the month, since next month it is she (the third batch) that is the first to be written off.
Option 2
The balance of kinescopes at the end of the month is 13 pieces worth 830 rubles, therefore, its cost is 10,790 rubles.
The cost of kinescopes put into production is: (25,000 + 39,750 - 10,790 = 53,960 rubles.
The actual cost of 1 kinescope put into production is: 53,960 rubles. / 60 pieces = 899.33 rubles.
From the above examples, it can be seen that the cost of kinescopes put into production and their balance in stock are the same when using both options. In the second option, it is enough to accurately determine which batch of kinescopes the stock balance consists of, and the cost of kinescopes put into production is determined by calculation without necessarily attributing to a specific batch, while in the first option it is necessary to determine exactly which batches of kinescopes are written off and stay at the end of the month. This option becomes very time-consuming if, during the month, purchases of materials and components in the organization are made quite often.
Write-off of materials to production using the LIFO method
This method is based on the assumption that materials are released into production in the reverse order in which they were purchased. Materials from previously purchased batches are not written off until the last one is used up. With this method, the materials released into production are valued at the actual cost of materials, the latest by the time of acquisition, and the balance of materials at the end of the month is valued at the cost of the first by the time of acquisition.
In the event that the first purchases of the batch are cheaper, and the subsequent ones are more expensive, the use of the LIFO method leads to an increase in the cost of production and a decrease in book profit. The balance of materials on account 10 "Materials" is reflected at lower prices.
If the prices of materials tend to decrease, then the situation is reversed.
There are two ways to determine the cost of materials written off to production using the LIFO method:
1. First, materials are written off at the cost of the last purchased lot, if the amount of written-off materials is more than this lot, the previous lot is written off, etc. The balance of materials is determined by subtracting the cost of written-off materials from the total cost of materials received during the month (taking into account the balance at the beginning of the month).
2. The balance of materials at the end of the month is determined at the price of the first at the time of purchase. The cost of materials written off to production is determined by subtracting the value obtained from the total cost of materials received during the month (taking into account the balance at the beginning of the month).
Example 6
Consider the write-off of materials into production using the LIFO method, using the conditions of the previous example (see table).
1 option
A total of 60 kinescopes were put into production, and first the third batch (15 pieces) is completely written off, then the second incoming batch (20 pieces), the first (10 pieces), and the remaining quantity (15 pieces) are written off from the balance at the beginning of the month. The cost of kinescopes put into production is:
15 pieces × 830 rub. + 20 pieces × 900 rubles. + 10 pieces × 930 rub. + 15 pieces × RUB 892.86 = 53,142.90 rubles.
The actual cost of one kinescope is: 53,142.90 rubles. / 60 pieces = 885.72 rubles.
The cost of the rest of the kinescopes in stock: 13 pieces × 892.86 rubles. = 11,607.18 rubles.
Option 2
The balance of kinescopes at the end of the month is 13 pieces worth 892.86 rubles, therefore, its cost is 11,607.18 rubles.
The cost of kinescopes put into production is: (25,000 + 39,750) - 11,607.18 = 53,142.82 rubles.
The actual cost of 1 kinescope is: 53,142.82 rubles. / 60 pieces = 885.72 rubles.
N.S. Kulaeva, consultant-methodologist of CJSC "BKR-Intercom-Audit"
Each method of estimating the cost of materials has its advantages, so the organization must independently choose and fix one of the methods in the accounting policy (FIFO, at average cost, at the cost of each unit).
Detailed information on methods for estimating the cost of materials is contained in the materials of the Glavbukh System.
Valuation Methods
To determine the price of materials written off to operation (production), that is, the amount that is debited from account 10, the organization must choose one of the ways to evaluate them:
Fix the choice of method for estimating the cost of materials written off in the accounting policy for accounting purposes. *
Estimated at the cost of each unit
When using the method of estimating the cost of materials at the cost of each unit, it is assumed that it is always known exactly from which delivery this or that unit of materials is taken. In this case, the organization has the opportunity to determine the cost of each write-off unit.*
There are two ways to form the cost of materials written off based on this method:
The organization shall apply this method to materials for which one unit cannot be freely substituted for another. For example, an entity is required to use this method to account for precious metals, precious stones, radioactive substances, and other similar materials.
An example of calculating the cost of written-off materials using the method of valuation at the cost of each unit of inventory
FIFO method
With the FIFO method, materials written off for operation (production) are valued at the cost of the first batch (of those available in stock). Therefore, evaluate the materials written off first at the cost of the balance of materials at the beginning of the month, then from the first purchase, the second, etc. * Such rules are established by paragraph 76 of the Guidelines approved.
To apply this method, each newly received batch of homogeneous materials is reflected as an independent group, regardless of whether such materials are registered or not.
The FIFO method is beneficial to use in a situation of constant reduction in prices for materials. In this case, the cost of written-off materials will be the highest, and the cost of materials on the balance will be minimal.*
The calculation of the cost of materials written off for operation (production) can be made:
With a weighted estimate at the end of the month, after the receipt and consumption of materials have been calculated, it is necessary to determine at what price each write-off occurred. This is done on the basis of a literal understanding of the FIFO method, that is, materials are first written off from the balance at the beginning of the month, after its use - from the first arrival, the second, etc.
With a simplified weighted assessment at the end of the month, you need to determine the cost of material resources in stock (in stock). The balance should include the last purchased materials. This means that the price of the leftover materials is determined by the cost of the last delivery, and if it is insufficient, by the penultimate one, etc. After the cost of the leftovers is determined, the cost of all written-off materials can be calculated using the formula:
This method allows you to quickly determine the cost of decommissioned materials and their balances when in large numbers expenses in small batches within a month.
In rolling valuation, the cost of materials is determined before each write-off. This method is the most time-consuming for manual processing, especially in large organizations, but accounting automation partially removes this problem. The advantage of this method is that it allows you to determine the cost of decommissioned materials before the end of the month.
paragraph 78 and Appendix 1 by order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n.
After determining the total cost of scrapped materials, determine the average cost per unit of materials:
It will be needed when generating postings for the write-off of materials in a certain amount (Appendix 1 to the Guidelines approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n).
An example of calculating the cost of written-off materials using the FIFO method
Average cost valuation method
When using the valuation method at the average cost price, the cost of written-off materials is determined by the formula:
The advantage of this method is the stable price of issued materials, even if there are sharp fluctuations in purchase prices during the month.*
The cost of decommissioned materials can be calculated:
In a weighted valuation, the average price of scrapped materials is determined once at the end of the month.
In rolling valuation, the price of materials is determined before each write-off. In this case, only those deliveries that were capitalized at the time of writing off the materials are taken into account. This method is the most time-consuming for manual processing, especially in large organizations, but accounting automation partially removes this problem. The advantage of this method is that it allows you to determine the cost of decommissioned materials before the end of the month.
Such clarifications are contained in paragraph 78 and Appendix 1 to the Guidelines approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n.
When writing off materials in a certain amount, form postings based on the average cost of a unit of materials (Appendix 1 to the Guidelines approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n).
An example of calculating the cost of written-off materials using the average cost method
Sergei Razgulin,
Acting State Councilor of the Russian Federation, 3rd class
Since January 1, 2008, all references to the LIFO method have been excluded from the legal documents on accounting (Order of the Ministry of Finance of Russia dated March 26, 2007 No. 26n). Therefore, starting from this date, the LIFO method is not used in accounting. In tax accounting, it has been preserved (clause 8, article 254 of the Tax Code of the Russian Federation).
LIFO principle
The LIFO method is based on the assumption that during a certain period goods are sold in the reverse order of their acquisition (receipt). That is, the goods that are sold first are valued at the cost of the most recent acquisitions. This takes into account the value of the balance of goods at the beginning of the period. If the number of goods in the last batch is less than those sold, then for calculation, take the cost of goods from the penultimate batch, etc. *
Elena Popova,
State Councilor tax service RF I rank
This article will be useful to all accountants, because inventories (IPZ) are used in almost all organizations. The organization must choose and fix in the accounting policy the method of writing off the inventory. Often the choice of the method of writing off the inventory is chosen intuitively. However, you will agree that each choice must be justified. The article will consider the essence of the methods for writing off inventories, options for using methods in accounting, tax and management accounting, and will also present the grounds for choosing one or another method for writing off inventories.
Recall that in accordance with PBU 5/01 "Accounting for inventories", approved by order of the Ministry of Finance of Russia dated 09.06.2001 N 44n, inventories include: materials, goods, finished products.
Meanwhile, situations often arise in organizations when the same inventories are purchased at different prices, from different suppliers, the amount of expenses included in the cost of inventories may also differ. What does this lead to? Often, when inventory is written off, it is impossible to determine exactly which batch these stocks are from, especially with a large range of materials.
Inventory is an object that is taken into account in accounting, tax and management accounting. For each type of accounting, its own method of assessing the inventory at their disposal can be chosen.
The assessment of the inventory for accounting purposes is established in paragraph 16 of PBU 5/01, which establishes that "the use of one of the indicated methods for a group (type) of inventories is based on the assumption of the sequence of application of accounting policies."
What methods are used to write off inventories in accounting?
All types of inventories, except for goods accounted for at sale value, are valued in one of the following ways:
- at the cost of each unit;
- at an average cost;
- at the cost of the first inventory acquisition time (FIFO method).
The organization can choose the method of writing off the MPZ on its own, based on preferences. So, let's consider the possibilities of using each method.
According to paragraph 17 of PBU 5/01, "inventories used by the organization in a special manner (precious metals, precious stones, etc.), or reserves that cannot normally replace each other, can be valued at the cost of each unit of such reserves". An example would be when an organization sells antiques or expensive exclusive cars.
We propose to consider in more detail the assessment of the inventory at the average cost.
As of July 1, 2014, there were 40 kilograms of chalk in the warehouse of Shkolny Dom LLC at a price of 30 rubles per kilogram (initial balance). Within a month, the warehouse received three batches of chalk (see Table 1).
We determine the cost of the chalk remaining in the warehouse at the end of the month when it is written off for production by three methods - at the average cost, FIFO, at the cost of each unit.
Calculate total cost, and the amount of purchased chalk:
45 rubles / kg x 60 kg = 2700 rubles.
In total, there are 280 kilograms of chalk in the warehouse at a cost of 10,700 rubles.
For a month, chalk was used up in the amount of 200 kilograms. Let's calculate its cost.
When using this method, the average cost of one kilogram of chalk is determined, for this the total cost of purchased chalk should be divided by its quantity:
10,700 rubles: 280 kg = 38.21 rubles / kg.
Let's write down the chalk for the amount:
38.21 rubles / kg x 200 kg = 7642 rubles.
Then in the warehouse of LLC "School House" there will be chalk in the amount of:
10700 rub. - 7642 rubles. = 3058 rubles.
Now consider the FIFO method. According to paragraph 19 of PBU 5/01, "estimation at cost of the first acquisition of inventories (FIFO method) is based on the assumption that inventories are used within a month and another period in the sequence of their acquisition (receipt), i.e. Inventories that are the first to go into production (sales) should be valued at the cost of the first acquisitions, taking into account the cost of inventory at the beginning of the month. , is made at the actual cost of the latest acquisitions, and the cost of goods, products, works, services sold takes into account the cost of early acquisitions.
When using this method, chalk is written off from the first in time of receipt, starting from the balance, according to the principle "first in, first out", i.e. "first in, first out" until the required amount is collected - 200 kilograms.
Remains in the warehouse (initial balance):
30 rubles / kg x 40 kg = 1200 rubles;
35 rubles / kg x 80 kg = 2800 rubles;
40 rubles / kg x 80 kg = 3200 rubles.
In total, 200 kilograms of chalk were written off from the warehouse in the amount of 7200 rubles.
10 700 rub. — 7200 rub. = 3500 rubles.
Another subtlety that few people know about. According to paragraph 78 of the Guidelines for accounting for inventories, the methods of average estimates (at the average cost and the FIFO method) of the actual cost of inventories can be carried out as follows:
- based on the average monthly actual cost (weighted estimate), which includes the number and cost of inventories at the beginning of the month and all receipts for the month (reporting period);
- by determining the actual cost of goods at the time of their release (rolling estimate), while the calculation of the average estimate includes the quantity and cost of inventories at the beginning of the month and all receipts until the moment of release.
The difference in the application of the rolling estimate is only in the choice of the date on which the EMF is estimated, but we will get more accurate results. When using a weighted estimate, it is made at the reporting date, and when using a rolling estimate, at the time of goods release.
The procedure for applying methods for evaluating goods when they are sold in Chapter 25 tax code not disclosed. The names of the methods are identical to the methods of applying the valuation of goods for sale and other disposal in accounting. Therefore, on the basis of articles 11 and 54 of the Tax Code, an organization can refer to the procedure provided for by the legislation on accounting, which describes in detail how to apply these methods.
In tax accounting, there are four methods (methods) for evaluating goods when they are sold, while in accounting there are only three.
- at the cost of the first in terms of acquisition time (FIFO);
- at the cost of the latest acquisitions (LIFO);
- at an average cost;
- at the cost of a unit of goods.
Currently, when writing off raw materials and materials for production (clause 8, article 254 of the Tax Code of the Russian Federation), when selling purchased goods (subclause 3, clause 1, article 268 of the Tax Code of the Russian Federation), the taxpayer can use the LIFO method. This method is characterized by the fact that the first to write off those inventory items that arrived last. But it should be remembered that from January 1, 2015, the legislator excludes this method from tax accounting (subclause "c" clause 7, clause 9, article 1 federal law dated 04.20.2014 N 81-FZ). Thus, the rules of tax accounting are brought into line with the provisions of accounting, because the LIFO method has not been used in accounting since January 1, 2008 (see Order of the Ministry of Finance of Russia dated March 26, 2007 N 26n "On Amendments to Regulatory Legal Acts on Accounting" ).
We use the initial data of example 1 and calculate the cost of spent chalk by another method.
The essence of the LIFO method is that the inventories are written off starting from the last received inventories.
45 rubles / kg x 60 kg = 2700 rubles;
40 rubles / kg x 100 kg = 4000 rubles;
35 rubles / kg x 40 kg = 1400 rubles.
In total, 200 kilograms of chalk were written off from the warehouse in the amount of 8,100 rubles.
When using this method, chalk will remain in the warehouse of School House LLC in the amount of:
10 700 rub. — 8100 rub. = 2600 rubles.
We will enter all the calculated data from examples 1, 2 and 3 in table 2.
After analyzing the data in the table, we can conclude that the FIFO method makes it possible to reduce the cost of production by reducing the cost of the materials used.
It should be noted that the average cost method is more traditional for domestic accounting.
For the purposes of management accounting, methods for evaluating materials are used, both traditional and those that are rarely used. For example, the HIFO method (HIFO, or "highest in, first out"), when released into production, materials are first written off from the warehouse from the lot with the highest purchase price. After this batch is exhausted, the next batch, the price of which is the highest, is written off, and so on until all the necessary materials are written off in the reporting period for production purposes. That is, using this method material resources items left in stock at the end of the month are valued at the lowest purchase prices. The LOFO method (LOFO, or "lowest in, first out"), when materials are released into production, are evaluated first of all at the lowest prices. In other words, the materials purchased at the lowest price are written off first. After this batch is exhausted, the next batch is written off, the price of which is the lowest, and so on until the required amount of materials is written off in the reporting period. Therefore, when applying this method, the material resources remaining in the warehouse at the end of the month are valued at the highest purchase prices. And this is not all the methods that are used in management accounting. What is the accountant-analyst guided by when choosing the method of writing off inventories in management accounting? It focuses on the goals of management in a particular organization.
And now let's determine how the impact of one or another method of writing off the cost is compared with the general task of reporting - to reliably present a picture of the financial position of the organization that is as close as possible to reality. What should you pay attention to?
Evaluation of financial statements indicators should include the following items:
- the balance of inventories at the end of the period, reflected in the composition current assets in balance sheet,
— financial results period and period expenses in the income statement,
— the amount of retained earnings ( uncovered loss) in the liabilities side of the balance sheet.
Inventories are part of current assets, that is, these are resources that should bring us income in the future.
Estimation of current assets determines the value of the overall liquidity ratio (or overall solvency), which is calculated as the ratio of the value of current assets and short-term liabilities. The reality of the assessment of current assets in this case is ensured by its maximum compliance with the current price level. Therefore, the most realistic assessment should be recognized by the FIFO method.
Profit is an indicator of the growth of the organization's capital, not associated with an increase in its liabilities. The growth of capital in the reporting of the organization indicates either the possibility of expanding the scope of its activities, or the possibility of withdrawing from the turnover of the organization part of the funds "earned" by it without prejudice to its financial position, which it had at the beginning of the period for which the profit was calculated in accounting. The FIFO method, in the conditions of rising prices, shows the maximum estimate of reserves and profits, and in the conditions of decreasing prices for the acquisition of reserves - the minimum estimate of these indicators. Compliance of the assessment of reserves in the balance sheet at the end of the reporting period with their "last" prices using the FIFO method brings their assessment as close as possible to the real state of affairs. And the larger the share of precisely the "last" prices in the calculation of the estimate of the balance of stocks, the more realistic it will be in this sense.
The advantage of the valuation method at the average cost is manifested to a greater extent if the cost of the acquired inventory is constantly changing. In such a situation, averaging the cost of decommissioned inventories allows you to "keep" the profit at an average level, thereby helping to avoid both its unpredictably high values that occur with a sharp drop in prices, and unexpected losses resulting from an increase in their value. Accordingly, stability will be maintained to a greater extent. financial indicators organizations. To what extent and in what cases is it fair? The application of the average price method is suitable for situations where the accountant's professional judgment allows him to assess the impact of changes in the prices of the acquisition of current assets on the financial statements as insignificant or insignificant.
The method of estimating the average cost can also be used in tax accounting (clause 8 of article 254 of the Tax Code of the Russian Federation and subparagraph 3 of clause 1 of article 268 of the Tax Code of the Russian Federation). The mention of this method in both accounting policies will help to avoid the difference between accounting and tax accounting data.
The method of calculating the cost of each unit of inventory is applied, if necessary.
The LIFO method (recall that its application is possible only within the framework of tax and management accounting) in the conditions of rising prices for acquired reserves forms a minimum estimate of reserves in the balance sheet at the end of the period, maximum value expenses of the period in the income statement and the minimum estimate of the financial result (profit or loss). In a declining price environment, LIFO gives us the maximum estimate of inventory on the balance sheet, the minimum estimate of period expenses, and the maximum estimate of financial result.
Thus, from the point of view of assessing current assets and calculating the organization's solvency indicators, the FIFO method is the best assessment option. However, the choice of the FIFO method does not have such a positive effect on the assessment of the financial result. Write-off of inventories under the FIFO method is carried out in the sequence of acquisition, that is, at the "first" prices. This effectively overestimates the financial result in comparison with the level of inventory purchase prices at the reporting date. The amount of profit, therefore, demonstrates the exaggerated ability of the owners to withdraw funds from the company's turnover and / or expand business volumes. The organization looks exaggeratedly profitable.
In financial accounting, when choosing between the FIFO method and the average price method, one should not forget about the analytical value of profit. A significant increase in prices for inventories can lead to an irrational withdrawal of funds from the organization's turnover. Based on this, the average price method, when you have to choose between it and FIFO, in our opinion, is more in line with the principle of prudence (conservatism).
Assessment of methods for writing off inventories and their impact on reporting
