Steps for making cost entries are as follows:
Cost entry is an important concept in accounting, which refers to the process of recording and allocating the costs incurred by a business in the production process according to certain rules. The purpose of cost entries is to reflect the cost structure of a business so that managers, investors and other stakeholders can understand the business situation.
Raw material cost entry: when a company buys raw materials, it will form raw material purchase cost. Accountants need to make debit and credit entries based on the actual purchase amount incurred, according to the type and quantity of raw materials. For example, 10 tons of steel are purchased at a price of $1,000 per ton for a total price of $10,000. The accounting entries are as follows:
Borrow: raw materials 10,000 yuan Credit:
Bank deposits 10,000 yuan
Labor cost entries: when a company pays its employees' salaries, the accountant needs to make debit and credit entries according to the actual salary costs incurred, according to the type and number of employees, respectively. For example, to pay the salaries of 10 employees, the average salary per person is 5,000 yuan. The accounting entries are as follows:
Borrow: Labor Costs 50,000 yuan (10 people * 5,000 yuan)
Credit: Bank Deposits 50,000 yuan
Manufacturing Expense Entries: When a company incurs various manufacturing expenses during the production process, the accountant needs to make debit and credit entries based on the actual expenses incurred, according to the type and number of expenses, respectively. For example, the following manufacturing costs are incurred: electricity costs 2000 yuan, water costs 1000 yuan, 500 yuan of depreciation of equipment. The accounting entries are as follows:
Borrow: Manufacturing overhead 3500 yuan (2000+1000+500)
Credit: Bank deposits 3500 yuan
Cost of goods sold entries: when a company sells a product, it needs to apportion the cost of production of the product to the cost of goods sold. Accountants need to apportion them according to the actual production costs incurred and the number of units sold, according to a certain method, and then make debit and credit entries. For example, 10 products were produced at a cost of $8 each, *** incurring $80 in production costs. Eight products were sold at an average selling price of $12 each. The accounting entries are as follows:
Borrow: cost of goods sold $96 (8 * $12)
Credit: production costs $80
The above is the basic production of cost entries. In the actual operation process, enterprises also need to according to their own operating characteristics and management needs, the cost entries for further refinement and improvement.