In the previous article, the structure of the production cost of products was considered, where the costs were grouped by costing items. Recall that all costs that form the cost can be grouped in connection with their economic content according to following elements:
First of all, consider the most significant of the cost items - material. Their share in the total cost is 60-90% and therefore they should be given special attention. First, let's break down what they include, and then talk a little about accounting for them.
The material costs of the enterprise include:
All of the above elements are included in the cost structure, minus the cost of waste sold. Waste should be understood as the remains of raw materials, materials, semi-finished products, heat carriers, etc., formed during the production process, which have completely or partially lost their consumer qualities. They can be sold at a reduced or full price, depending on their future use. Material resources that, according to the established technology, are transferred to other workshops and used as a full-fledged material for the production of other products, do not belong to returnable waste.
The material costs of the enterprise should include all purchased materials used to ensure technological process including product packaging and materials used for other production and economic needs (maintenance and operation of equipment, buildings and structures, testing, control, etc.). This also includes fixtures, inventory, laboratory equipment and other means of labor not classified as fixed assets.
A great influence on the cost of material resources is exerted by the price of their acquisition (without VAT), margins (surcharges), commissions to supply and foreign economic organizations, the cost brokerage services and commodity exchanges customs duties, payment to third parties for storage, transportation and delivery. In order to establish the optimal price of products, and increase profitability, enterprises should conduct a thorough analysis of the prices of materials and services offered by different suppliers. In addition, to improve the efficiency of the use of material resources, it is necessary to introduce low-waste, resource-saving technologies. An important point, affecting the cost, is the completeness of the collection and further use of waste, their reasonable assessment.
One of the prerequisites for the rational use of materials is the rationing of material costs. The consumption rate is the maximum allowable amount of raw materials, materials, fuel spent on the manufacture of a unit of output of the established quality, the performance of technological operations. At present, the system of standards is a set of scientifically based labor, material and financial norms, the procedure and methods for their formation, updating and use in the development of long-term and current plans.
There are four methods for controlling the use of raw materials and materials:
The documenting method is used at all enterprises; it is based on the registration of separate documents for all cases of deviations in the consumption of materials from the established standards.
In the machine-building industry, the method of batch cutting is widely used. Its essence lies in the preparation of cutting sheets (account cards) for each batch of material. They indicate the amount of materials, blanks and waste that should be received, and the actually received waste and blanks, then these values are compared with the normative ones, thereby saving or overspending is determined. The record card indicates the reasons for deviations and the persons responsible for cutting.
With batch accounting, batches of raw materials and materials that are homogeneous in terms of technological parameters are formed. All batches are stored separately, and each is assigned its own number. These lot numbers should henceforth appear on all primary documents accounting of materials, which allows them to be attributed to specific types of products.
With the inventory method, after a certain period of time (usually a month), an inventory of unused raw materials and materials is made. The inventory method can be characterized by the formula:
P \u003d He + P - Ok, where
R- the cost of the materials used;
He- the cost of the initial balance of materials;
P- receipt of materials per month;
OK- the cost of the final balance of materials.
Enterprises consume a huge amount of various material resources. Managers need to constantly monitor compliance with standards and the dynamics of actual material costs, since these costs have the greatest impact on the amount of profit received, and saving materials is the most important factor improve production efficiency.
That's all I wanted to say about material costs. In the following articles, we will consider other types of costs included in the cost of production.
If you have any questions you can ask them
Material costs (costs) account for a significant portion of the costs of economic activity enterprises. The taxable base for income tax depends on their correct calculation, as well as when calculating the "simplified" tax with the object of taxation "". The list of material costs is defined in Chapter 25, Art. 254 NK.
1. Material expenses include the following types of expenses:
1) raw materials and materials for the production of goods (performance of works, provision of services) and their components;
2) materials for packaging goods and other needs related to the production of goods (testing, control, operation, maintenance of fixed assets, etc.);
3) tools, fixtures, inventory, devices, laboratory equipment, overalls and other means of individual and collective protection in accordance with the law Russian Federation, and other property that is not depreciable. (before it was MBP - low-value wearing items). The cost of such expenses is included in the composition of material costs in full when it is put into operation (issued to employees on demand, invoice and other documents);
4) components for installation, semi-finished products for additional processing;
5) the purchase of fuel, energy of all types, water for technological purposes, the production of all types of energy, including for own needs, heating of buildings, and the costs of production or acquisition of capacities, the costs of transformation and transmission of energy;
6) acquisition of works and services for the needs of the enterprise (of an industrial nature) performed third parties, IP, structural divisions taxpayer.
Production services (works) include:
Performance of individual operations for the production (manufacturing) of products, performance of work, provision of services,
Processing of raw materials, materials,
Monitoring compliance with technological processes,
Maintenance of fixed assets and other work.
Transport services for the transportation of goods within the organization (for example, the movement of raw materials, tools, parts, etc. from the central warehouse to the workshop (department)), carried out by third-party organizations, individual entrepreneurs, structural divisions of the taxpayer himself; as well as delivery finished products under the terms of agreements (contracts);
7) maintenance and operation of fixed assets and property for environmental purposes (treatment facilities, ash collectors, filters). This also includes the costs of burial, reception, storage, destruction of hazardous waste, cleaning Wastewater, the formation of sanitary protection zones on the basis of sanitary and epidemiological rules and regulations, payments for maximum permissible emissions of pollutants into the environment, and other similar expenses.
2. Material expenses include:
The cost of inventories based on the price of their acquisition, excluding VAT and excises (except for the cases provided for by this Code),
Commission fees to intermediary organizations for services rendered,
Import duties and taxes,
Transportation and other costs associated with their acquisition.
If surpluses are found during the inventory, with property received as a result of dismantling or dismantling decommissioned fixed assets, during repair, reconstruction, modernization, technical re-equipment, partial liquidation of fixed assets, the cost of material expenses is considered as the amount of income received by the taxpayer on the basis of clause 13 and paragraph 20, part 2 of Art. 250 NK.
3. Upon receipt from the supplier along with inventories of non-returnable packaging, its cost is included in the amount of purchase costs.
Upon receipt from the supplier together with inventories of returnable packaging, if its price is included in the price of materials, its cost is excluded from the purchase price by the amount of its possible use.
How to define returnable and non-returnable packaging? The terms of tare and packaging of goods are stipulated in the contracts for the supply of materials.
4. If the taxpayer uses products of his own production as raw materials, materials, semi-finished products, spare parts, components and other expenses, or if the taxpayer includes the results of work, services produced on his own in the composition of material costs, the assessment of these products, works, services is carried out on the basis of Art. 319 NK.
5. The amount of material expenses of the current month is reduced by the value of the balance of inventories transferred to production, but not yet used at the end of the month.
6. How to account for return costs? The amount of material costs is reduced by the cost of returnable waste. Returnable waste - the remains of raw materials, materials, semi-finished products, heat carriers and other material resources generated in the process of production of goods (rendering services, performing work), which have partially lost their consumer qualities and, as a result, are used at additional costs or not used for their intended purpose.
Returned waste does not include:
Inventories that are transferred to other divisions according to technological production for further use,
By-products resulting from production.
Evaluation of returnable waste:
1) at a reduced price of the original material resource when using it for further production, but at an increased cost;
2) at the selling price when selling to a third party.
7. For the purposes of taxation, the following costs are equated to material costs:
1) expenses for land reclamation and other environmental measures, with the exception of Art. 261 NK;
2) losses due to shortage or damage during storage and transportation of material reserves within the limits of natural wastage;
3) technological losses during production or transportation. Technological losses are losses resulting from technological production.
4) expenses for the extraction of minerals.
8. When writing off raw materials and materials for production, the enterprise in accounting policy reflects the write-off method:
1. at the cost of a unit of inventory;
2. at an average cost;
3. by the cost of the first time materials (FIFO method);
4. by the cost of the latest materials ( .
Material costs include everything that has a price and quantity, and that is used directly in the production, performance of work, provision of services, as well as the costs associated with their promotion to the buyer: packaging, storage, transportation, etc.
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Accounting features imply that all firms have the right to independently determine the list of material costs and reflect it in their accounting policies. In accounting, accounts from 20 to 29 are provided for accounting for material costs. In the balance sheet, line 1210 is provided specifically for their reflection.
Since the list of material costs in accounting is determined by all firms themselves, character traits Accounting for such expenses will be directly dependent on the characteristics of the activities of a particular company.
The unity of the approach to their accounting lies only in the fact that material costs, being a component of production costs, are accounted for in accounts 20 to 29.
The cost formula will be as follows:
Mz \u003d Zmdt + Zte + Zsip + Zstop + VATm.
Consider unified reporting forms and establish how to find material costs in the balance sheet.
To account for material costs in the balance sheet is not provided for special. lines. But, despite this, accounting provides several accounts for their accounting: 20, 21, 23, 25, 26 and 29.
Material costs are one of the main cost items of any production process. In this regard, they are usually under the close supervision of employees of the department. economic planning. After all, it is not enough to calculate material costs, it is also important to analyze the results obtained.
One of the main coefficients, which is calculated using the indicator of material costs, is the consumption of materials. To calculate it, it is necessary to divide the material costs by total amount the cost of manufacturing goods. This indicator reflects how much is the share of material costs in the total cost of goods.
Another approach to determining the material consumption is the calculation of the share of material costs in the production of products. In this case, material consumption is the ratio of material costs to the number of manufactured goods in value or physical terms.
An increase in this indicator means that the amount of material costs per product has increased, and the profitability of goods has decreased. That is why the management of material intensity is the key to reducing costs and increasing the profitability of production.
Separately, you can determine the profit per 1 rub. material costs. This can be done using the formula:
The coefficient of material costs is calculated by the formula:
Kmz \u003d MZf / MZp.
To determine the need for working capital, it is necessary to determine the material costs per unit of output.
Material costs for the manufacture of products are calculated based on the relevant consumption rates per unit of output and current prices.
At this enterprise for production, such material values like wool of a young sheep, deer skin, linen, threads, buttons, zippers, lining, scissors, glue, needles, chalk, bobbins
Calculations are provided in tables 4.1, 4.2., 4.3. Annex D
The cost estimate reflects the total costs for the year, grouped by production factors:
The cost is valuation used in the production process of products (works, services) natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources and other costs of its production and sale.
The costs that form the cost of production are grouped according to their economic content according to the following elements:
material costs (minus the cost of returnable waste);
labor costs;
deductions for social needs;
depreciation of fixed assets and intangible assets;
other costs.
The classification of costs by costing items allows you to determine the cost of a unit of production, distribute costs by assortment groups, set the amount of costs for each type of work, production units, management apparatus, and identify cost reserves.
In the most general view The nomenclature of costing items is as follows:
The total of the first ten articles allows you to get the shop cost, the total of the first thirteen articles forms the production cost, and the total of all fourteen articles - full cost products.
There are also many other classifiers.
Based on the number of employees (see table 2), the wages of employees who have a time-based form of remuneration are determined. It is necessary to calculate the amount of insurance premiums for the month and year (in 2015 insurance premiums account for 34%. The calculation results are presented in Table 5. Appendix D
Time-based - a system of remuneration in which wages depend on the amount of time spent (actually worked), taking into account the qualifications of the employee and working conditions (Fig. 2.2). time-based form wages can be implemented in the form of the following payment systems: simple time-based; time premium. Time wages are used by 70-80% of American workers, and by 60-70% of workers in Western Europe. In Russia, according to various estimates, the time-based form of payment is used by about 20-30% of workers.
With a time-based system of remuneration, workers are set normalized tasks. For the performance of certain functions and scope of work, service standards or norms for the number of employees may be established.
Distinguish between a simple time-based form of wages and time-bonus:
For workers with piecework wages, tariff rates(piecework wages of the main worker - the basic wages of the production worker). The calculations are presented in Table 6. Appendix E.
Piecework - a system of remuneration in which earnings depend on the number of units produced, taking into account their quality, complexity and working conditions
To calculate the amount of depreciation deductions, you must first select the depreciation method (conditionally, depreciation is charged on a straight-line basis). Depreciation is charged on fixed assets that are on the balance sheet of the enterprise. Leased fixed assets are not subject to depreciation. The calculation of the amount of depreciation should be made for each item of fixed assets. To calculate the depreciation rate, it is necessary to determine the period beneficial use for each item of fixed assets based on the list of depreciation groups.
The depreciation rate will be calculated using the formula
where t is the useful life of the fixed asset;
N a - depreciation rate, %.
The amount of depreciation linear method for each item of fixed assets is calculated by the formula
S a \u003d S first N a,
where S a - the amount of depreciation, rub.;
S first - the initial cost of fixed assets, rub.
To calculate the amount of depreciation, the initial cost of fixed assets is used, which is reflected in Table. 3.
The calculation of the rate and the amount of depreciation should be explained by the corresponding calculations for each item of fixed assets.
The calculation results are presented in Table 7. Appendix G
Calculation of material costs for the period (factor-subject of labor)
The calculation of material costs for the period is reflected in table 8. It is necessary to use material costs per unit of each product, which are reflected in tables 4.1, 4.2, 4.3, 4.4, and the annual sales volume for each product, which is reflected in table 1. Calculations are provided in table 8. Annex H
Based on the above calculations, an estimate of production costs is compiled.
Table 9 Production Cost Estimate
The value of annual material costs is taken from table 8. The cost of wages for the year is determined as the sum of the annual time wage from table 5 and the annual piecework wage, which is reflected in tables 6.1, 6.2, 6.3, 6.4. The amount of annual depreciation is taken from table 7.
Other costs include:
the cost of renting premises, other fixed assets (equipment, vehicles);
utilities;
communication services (telephone, internet);
The results are presented in Table 9. Appendix I.
How to find material costs in the balance sheet?
The balance of accounts 20 "Main production", 23 "Auxiliary production", 29 "Service production and farms" for reporting date stands for work in progress (WIP). The balance of WIP, own semi-finished products (account 21 "Semi-finished products of own production") and unwritten losses from marriage (account 28 "Marriage in production") are reflected in the asset of the balance sheet in line 1210 "Inventories" (clause 20 PBU 4/99, Order of the Ministry of Finance dated 02.07.2010 No. 66n).
Recall that accounts 25 “General production expenses” and 26 “General expenses” have no balance at the end of the month.
At the same time, it is difficult to say what the formula for calculating the balance sheet is for material costs. Indeed, in the data of the “Inventory” line, along with material costs, labor costs in WIP and other costs can be reflected, depending on. In addition, the line "Stocks" reflects the materials themselves in the form of their stock balance, which has not yet been used up, respectively, they are not yet material costs, as well as finished products, the material costs of which have already taken the form of a finished processing result of labor and are not are WIP, etc.
Material costs, as one of the main cost items of any production, are usually under the close attention of employees of the planning and economic department, departments involved in cost forecasting and performance analysis. After all, it is not enough to calculate material costs, it is important to analyze the obtained values in their relationship with other indicators.
One of the main coefficients calculated using the indicator of material costs is material consumption.
Material consumption is calculated as the ratio of material costs to the total cost of production. It shows what is the share of material costs in the total cost of finished products.
Another approach to calculating material consumption is to determine the share of material costs in output. In this case, material consumption is the ratio of material costs to the volume of output in physical or monetary terms. The growth of the material consumption coefficient indicates an increase in the value of material costs per unit of production and a decrease in its profitability. Therefore, the management of material consumption at the enterprise is the key to reducing costs and increasing the profitability of production.
P MZ \u003d P / MZTo calculate the profit per ruble of material costs, the following notation is used in the formula:
This indicator is essentially the return on material costs. It shows how much profit (in rubles) brings 1 ruble of material costs incurred.
The ratio of actual material costs to planned is the coefficient of material costs. In this case, the planned material costs are recalculated for the actual output.
We give the formula for the coefficient of material costs:
K MZ \u003d MZ F / MZ P,where K MZ is the coefficient of material costs;
МЗ Ф - actual material costs;
MZ P - planned material costs calculated for the actual release.
