Production of products is always associated with certain costs, which subsequently form the cost value. General production expenses combine the amounts necessary to maintain the main and auxiliary production workshops. Costs not directly related to the manufacture of products are classified as general business expenses and are accounted for separately.

Definition

Manufacturing overhead costs are costs directly related to production activities. The main distinguishing feature from direct costs of manufacturing products is that the amounts cannot be attributed to a specific type of product. General production expenses may include costs for:

• depreciation deductions;
• equipment maintenance;
• payment for utility services;
• rent of industrial premises;
• wages for workers involved in the service process;
• other expenses.

Although costs are not directly related to any type of product, they must be taken into account when calculating production costs.

The concept of general expenses

The activities of any enterprise are necessarily connected with the functioning of its various departments. A production workshop cannot operate on its own without management and control employees. The products must then be stored and sold, which requires other personnel and premises. All this leads to the formation of costs that seem to be far from the production process, which are combined into the group of general business expenses.

They may include amounts necessary for:

• covering administrative and management expenses;
• remuneration for employees employed outside production;
• depreciation and repair of general purpose fixed assets;
• payment for rent of non-production premises;
• covering other expenses of a similar nature.

General business expenses are also written off to the cost of manufactured products in accordance with the rules of the enterprise's accounting policy.

Characteristics of overhead costs

General production and general business expenses are combined into a group of indirect costs that arise in the course of the enterprise's activities. It is difficult to trace the ratio of their amount to types of products and production time, so they are written off by the method of allocating costs in proportion to a given indicator.

General production and general business expenses are taken into account, highlighting separate cost items and departments (shops). This allows you to control the distribution of funds and identify the most expensive objects to maintain and manufacture.

Overhead costs in accounting data

General and general production expenses in total terms are reflected in synthetic accounts 25 and 26. Both accounts do not have a balance at the end of the month, since they serve to collect and distribute the costs of main production. The amounts are written off to account 20, making entries Dt 20 Kt 25/26. Some enterprises (for example, those providing intermediary services) account for all administrative and general business expenses on account 26, without using account 20.

Analytical accounting is also kept for accounts 25 and 26. Sub-accounts are opened for each workshop, as well as for individual items of general business expenses. When filling out, the accountant is based on data from primary documentation and other forms of accounting registers developed by the enterprise. Additionally, statements No. 12 and 15 are maintained to account for general production and general business expenses.

Typical entries for the debit of accounts 25, 26

Accounting for overhead costs includes collecting information about cost items for maintenance, servicing and fulfilling the needs of main and auxiliary production. Using account 26 pursues the same goals, only the amounts of administrative and management expenses are recorded. Over a certain period, the necessary information is collected in the debit of accounts 25 and 26.

In this case, the following postings Dt 25/26 can be made:

• Kt 02, 05 – depreciation of fixed assets and intangible assets has been accrued;
• Kt 70 – wages accrued to general production (administrative) personnel;
• Kt 69 – social benefits accrued. payments to employees involved in servicing workshops (management employees);
• Kt 76 – general production (general business) expenses include payment of utility bills;
• Kt 10 – materials were sent for the maintenance of production (administrative) facilities.

In addition to the account assignments discussed above, others can be used. The main thing is not to violate the principle of double entry and follow the rule of an active account: credit in debit, write-off in credit.

Loan transactions: write-off of overhead costs

The instructions for using the standard chart of accounts say that collective synthetic accounts 25 and 26 must be closed at the end of the month. This requirement means that all debit amounts are charged to account 20 (or 90 for general expenses). The accountant will record entries like:

• DT “Main production” CT “Overhead production expenses” – the amounts of general production expenses incurred for the needs of the main production shops are written off;
• Dt “Service production” Kt “Overhead production costs” – the amounts of overhead costs for remuneration of personnel of service production are attributed;

• DT “Auxiliary production” CT “General production expenses” – expenses for utility bills for auxiliary production facilities are written off;
• DT “Main production” CT “General business expenses” – general business expenses were included in the actual production cost;
• Dt “Cost of production” Ct “General expenses” – the amounts of administrative and managerial costs are written off to the cost of production.

Depending on which account the data from the debit turnover of general business expenses is credited to, the full or production cost of the products is formed.

Production cost

Costs arising in connection with the maintenance or maintenance of production facilities can be attributed to the final result in proportion to the amount specified by the accounting policy. The distribution of overhead costs aims to calculate the cost per unit of production at the exit from the workshop, taking into account all the costs of the industrial cycle.

The distribution of general production and general business expenses when using this method occurs in different ways: from account 25 the amounts are written off to the 20th account, and from 26 to 90. Thus, administrative, managerial and other overhead expenses in terms of general business expenses are not included in the production cost, but relate directly to the financial result.

This is one of the methods that can be applied in an enterprise. Production cost indicators allow you to analyze the profitability of a particular workshop and regulate the amount of costs for the production of certain types of products.

Cost and taxation

In order not to create additional registers for tax accounting purposes, it is better to account for overhead costs at the full production cost. The method involves writing off to the debit of account 20 both general production and general business expenses. The accountant’s choice of a method for attributing indirect costs to the cost of products should be based primarily on the provisions of the enterprise’s accounting policy.

General production expenses (account 25) and expenses for general business needs, together with data from account 20, make up the bulk of the cost of manufactured products. The data is used both for the purposes of accounting and analysis of the financial activities of the enterprise, and for tax service data.

To account for production costs, active accounts are used:

20 “Main production” - costing;

21 “Semi-finished products of own production” - inventory (used by enterprises that practice the semi-finished version of accounting for production costs);

23 “Auxiliary production” - costing (for transport, construction, repair shops, boiler rooms, compressor rooms);

25 “General production expenses” - collective and distribution (managed by enterprises with a workshop management structure);

26 “General business expenses” - collection and distribution;

28 “Defects in production” - calculation;

29 “Servicing industries and farms” - costing (to reflect costs for non-production facilities: housing and communal services, canteens, rest homes, sports facilities);

97 “Future expenses” - budgetary and distribution.

Costs of main production.

Analytical accounting of production costs is organized in accordance with the requirements of industry instructions for planning, accounting and calculation. Enterprises that produce products maintain analytical accounting by type of product produced on the basis of semi-finished or unfinished accounting options. Enterprises providing services carry out analytical accounting for each type of service provided.

To calculate the actual production cost of manufactured products or work performed, the following formula is used:

Products (works) that have not passed all stages (phases, processing stages) provided for by the technological process, as well as incomplete products that have not passed testing and technical acceptance, are classified as work in progress .

Work in progress in mass and serial production can be reflected in the balance sheet:

¨ according to actual or standard (planned) production cost;

¨ for direct cost items;

¨ at the cost of raw materials, materials and semi-finished products.

With a single production of products, work in progress is reflected in the balance sheet at the actual costs incurred.

Auxiliary production costs.

Auxiliary production is production that produces products and provides services that meet the needs of the main production. These include: transport shop (section), repair shop, energy shop, construction shop, etc.

Analytical accounting is carried out by type of production.

According to D-t 23 accounts reflect:

Direct costs due to the execution of work (K 02, 05.10, 23, 28, 97, 60, 68, 69, 70, 71.76);

Part of the indirect costs for production maintenance and management (K 25, 26).

According to K-tu, 23 accounts reflect the amount of the actual cost of completed production of products, work performed:

- when released to main production (D 20)

- when releasing products to service industries (D 29);

- when selling (D 90).

The balance of account 23 at the end of the month shows the cost of production work.

The repair shop's expenses for routine maintenance and repairs are written off from K23 to production costs (D 20, 23, 25, 26, 29, 44), if a repair fund is not formed at the PP.

If such a fund is formed, then the expenses are written off:

D 96 “Reserves for future expenses” K 23.

Expenses of the transport department from credit 23 are debited 07, 08, 10, 20, 23, 25, 26, 43, 44, 45, 76, 90, 91) depending on the direction of services consumed.

General production (shop) expenses .

If the enterprise has a shop management structure, then account 25 is used. Analytical accounting is carried out by PP divisions, and within them - according to the established nomenclature of expenses.

The table shows overhead costs.

	Articles	Characteristics and content of expenses
		Salary with contributions to social insurance of workshop management personnel, other costs for managing the workshop (dispatcher communications)
		Wages with social insurance contributions for engineering and other workers
	Depreciation of fixed assets	Depreciation of buildings, structures and equipment
		The cost of materials spent on the economic needs of the workshops, as well as on the maintenance of the electrical network, heating network, water supply and sewerage, to keep the premises clean, the cost of fuel, the salary of auxiliary workers employed at various households. Work (cleaning, snow removal).
	Current repairs of buildings, structures and equipment	Cost of consumed repair and construction materials; repairmen's salaries; cost of repair shop services.
	Tests, experiments and research	The cost of materials and products spent on experiments, research, testing and rationalization. Proposals, wages of workers for these jobs; payment of royalties, payment for examinations and consultations.
	Occupational Safety and Health	Current costs for the installation and maintenance of machine guards, ventilation devices, costs for the installation and maintenance of disinfection chambers, washbasins, showers, etc.
Unproductive expenses
	Downtime losses		Wages and social insurance contributions for workers during downtime caused by the workshop, the cost of raw materials, fuel and energy consumed during downtime.
	Losses from damage to inventory items		The cost of spoiled materials, semi-finished products and products when stored in workshop storerooms.
	Losses from underuse of parts, assemblies and technical equipment. rigging		These losses are due to shortcomings in shop planning (overestimated or incomplete launch, etc.).
	Shortage of goods and materials, work in progress		Cost of shortages (minus surpluses) of goods and materials identified during inventory in shop storerooms
	Does not produce others.		For example, benefits for disability resulting from work-related injuries.

On the debit of account 25, entries are made from the credit of accounts 02, 05, 10, 60, 69, 70, 71, 76.

General production expenses collected during the month on debit 25 of the account at the end of the month are included in the production cost of products of the main production (D 20 K 25) or auxiliary production (D 23 K 25).

Between the types of manufactured products (work), costs are distributed in proportion to some base (established by industry instructions for planning, accounting and calculation). The most commonly used are workers' compensation, direct costs, material costs, and machine hours worked.

If there was a defect, then the corresponding part of the expenses is written off: D 28 K 25. There is no account balance of 25 at the end of the month.

General economic (general operating) expenses.

Such expenses include expenses for management needs not directly related to the production process. If the structure of the enterprise is not built on a workshop principle, but general production expenses are planned for the enterprise as a whole, then account 26 is used to reflect expenses.

Analytical accounting for account 26 is carried out for each item of general business expenses estimates and the location of costs.

The table shows general business expenses.

		Characteristics and content of expenses
PP management costs
	Salary of the PP management staff		Salary with social security contributions for management personnel
	Business trips and relocations		Expenses for all types of business trips of management employees, expenses and expenses for the movement of these employees and members of their families.
			Salary of watchman, fire and security personnel and social security contributions. insurance, amounts paid to other organizations for security
	Other expenses		Office, telephone expenses, cost of reporting forms, costs of maintaining telephone exchanges, dispatch communications, buildings and premises of the plant management (heating, lighting, water supply, routine repairs and cleaning);
	Deductions for the maintenance of higher organizations
General running costs
				Salaries of non-managerial plant personnel and social insurance contributions
	Depreciation of fixed assets			OS of a general plant nature
				Expenses for maintaining all general operating systems in good working order; the cost of lubricants and cleaning materials, salaries and social contributions. insurance for workers serving warehouse operations and storekeepers, rent for buildings and premises; fuel costs, energy costs; for current repairs of buildings
	Production tests
	Occupational Safety and Health			Labor safety costs (non-capital): safety costs, industrial sanitation costs
	Personnel training			Expenses for on-the-job training to prepare new workers (payment to teachers for lectures, costs for the purchase of teaching aids, payment of scholarships to successful students sent to study at universities and technical schools).
	Organized labor recruitment
	other expenses			Expenses for the maintenance of duty transport and special vehicles. destination (except for official cars).
	Taxes, fees			State duties, payments for maximum permissible emissions of pollutants
Factory overhead expenses
	Downtime losses			The amount of workers' wages due during downtime and social security contributions. insurance; the cost of raw materials, materials, fuel and all types of energy consumed during the period of production shutdown.
	Losses from spoilage of inventories during storage in factory warehouses
	Shortage of materials in factory warehouses
	Other expenses			Payment of legal costs and arbitration fees, fees for overconsumption of electricity and gas limits.

During the month, all general business expenses are collected on the debit of account 26 from the credit of accounts 02.05, 10, 21, 23, 43, 60, 68, 69, 70, 71, 76, 97.

At the end of the month, minus returns (D 10 K 26), they are distributed and included in the costs of main or auxiliary production (D 20, 23 K 26). The distribution base is chosen by the enterprise (as for overhead costs).

It is allowed that expenses are not charged to the accounts of production costs, but are immediately written off to sold products (work, services): D 90 K 26. Between types of products, general business costs are distributed in proportion to sales revenue.

At the end of the month there is no balance on the 26th account.

Accounting for product defects.

Products that, due to defects in them, cannot be used for their intended purpose are considered defective.

1. According to the degree of correctability, the following are distinguished:

a) correctable defect (defects are removable and economically feasible);

b) incorrigible (defects are irreparable or correctable, but economically impractical).

2. At the place of detection:

a) internal (identified at the PP);

b) external (identified by the consumer).

Debit 28 of the account takes into account the costs of correcting defects (K 10, 25,26, 60, 69, 70, 76) and finally rejected products of the main and auxiliary production (K 20, 23).

For credit 28, accounts reflect the amount of deductions for defective products (D 70), capitalized rejected products at the price of possible use (D 10), losses from defects written off as production costs (D 20, 23), amounts to be recovered from suppliers for the supply of substandard materials (D 76). There is no account balance of 28 at the end of the month.

Analytical accounting is carried out by workshops, types of products, causes and culprits in the context of expense items.

Future expenses.

Deferred expenses include expenses incurred in a given reporting period, but related to future periods:

o costs associated with mining and preparatory work;

o preparatory work for production due to its seasonal nature;

o development of new production facilities, installations, units;

o land reclamation and implementation of other environmental measures.

Debit 97 of the account reflects expenses incurred (K 02, 05, 10, 23, 25, 26, 60, 70, 76). Under credit 97 of the account, expenses are written off evenly in the manner established by the organization (evenly, in proportion to the volume of production, etc.) during the period to which they are included as expenses (D 20, 23, 25, 26, 44).

–
–

Cost Allocation

material costs;

part of general business expenses in the amount of RUB 56,250. (125,000 rub.

The procedure for writing off general production and general business expenses

– 68,750 rub.).

Debit 20 (23, 29) Credit 25

To account 20 “Main production” (23 “Auxiliary production”, 29 “Service production and facilities”);
to account 90-2 “Cost of sales”.

Debit 20 (23, 29) Credit 26

Debit 62 Credit 90-1
Debit 90-2 Credit 43


Debit 90-2 Credit 26

Account 25 “General production expenses” displays all the organization’s costs aimed at servicing main and auxiliary production, subject to distribution. Separate display of information on production costs makes it possible to analyze costs more deeply in order to minimize them and accurately attribute them to specific manufactured products.

Attention!

Account 25 - accounting entries for general production costs

Account 25 is closed monthly by transferring amounts to cost items for inclusion in the cost of production of main or auxiliary production. The distribution method is determined by enterprises independently (must be reflected in the accounting policies)

Analytical monitoring

Normative base

1. Depreciation calculation

Lyudmila Poberezhnykh, 2017-01-03

Questions and answers on the topic

Reference materials on the topic

Return to Indirect Costs

General business expenses can be written off in one of two ways:

The chosen method of writing off general business expenses is fixed in the accounting policy for accounting purposes (clause 7 of PBU 1/2008, clause 20 of PBU 10/99).

Cost Allocation

General production and general business expenses are associated with the production of different types of products (works, services), and also ensure the operation of the organization as a whole. Therefore, unlike direct (primary) costs, these costs are considered indirect (overhead).

At the end of the reporting period, accounts 25 and 26 are closed. The expenses accumulated on them are written off to the debit of accounts: 20 “Main production”, 23 “Auxiliary production”, 29 “Service production and facilities” or 90 “Sales” in proportion to the indicators that must be established in the accounting policy for accounting purposes (clause 7 PBU 1/2008).

The basis for the distribution of indirect costs between main, auxiliary and service production can be, for example, the following indicators:

Salaries of main production workers;
direct costs with a workshop structure of the organization;
the number of machine-hours worked for the equipment;
size of production area;
material costs;
volume of production in natural or cost terms.

For example, in industries with a significant share of labor costs, it is advisable to distribute indirect costs in proportion to the salaries of the main production workers. Distribute indirect costs in proportion to material costs (cost of raw materials, materials, spare parts, etc.) if they constitute a significant share of the cost of manufactured products.

An example of the distribution of indirect costs associated with fulfilling a production order. The organization uses the custom costing method.

In April, OJSC "Production Company "Master"" accepted and completed two production orders (No. 1 and No. 2) for the manufacture of special transport equipment. The accounting policy of “Master” stipulates that general production and general business expenses are distributed in proportion to the salaries of production workers involved in fulfilling each order.

In April, the actual amount of expenses was:

General production – 100,000 rubles;
general business – 125,000 rubles.

Direct costs for order No. 1 were:

Cost of materials used – 82,300 rubles;
salary of production workers - 68,500 rubles;
the amount of contributions for compulsory pension (social, medical) insurance and contributions for insurance against accidents and occupational diseases from the salaries of production workers is 20,687 rubles.

Total for order No. 1 – RUB 171,487.

Direct costs for order No. 2 were:

The cost of materials used is 151,500 rubles;
the amount of accrued wages of production workers is 55,000 rubles;
the amount of contributions for compulsory pension (social, medical) insurance and contributions for insurance against accidents and occupational diseases from the salaries of production workers is 16,610 rubles.

Total for order No. 2 – RUB 223,110.

Account 25 (overhead expenses)

The total salary of production workers for both orders was 123,500 rubles. (RUB 68,500 + RUB 55,000).

The share of wages of production workers in the total amount of their wages is equal to:

For order No. 1 – 55% (RUB 68,500: RUB 123,500);
for order No. 2 – 45% (RUB 55,000: RUB 123,500).

The cost of order No. 1 includes:

Part of overhead costs in the amount of RUB 55,000. (RUB 100,000 x 55%);
part of general business expenses in the amount of 68,750 rubles. (RUB 125,000 x 55%).

The actual cost of order No. 1 was:

RUB 171,487 + 55,000 rub. + 68,750 rub. = 295,237 rub.

The cost of order No. 2 includes:

Part of overhead costs in the amount of RUB 45,000. (RUB 100,000 – RUB 55,000);
part of general business expenses in the amount of RUB 56,250. (RUB 125,000 – RUB 68,750).

The actual cost of order No. 2 was:

RUB 223,110 + 45,000 rub. + 56,250 rub. = 324,360 rub.

Write-off of general production expenses

When writing off general production expenses (after distribution), make the following entry:

Debit 20 (23, 29) Credit 25
– general production expenses for the reporting month are written off.

This follows from the Instructions for the chart of accounts (accounts 20, 25).

Write-off of general business expenses

General business expenses can be written off in one of two ways:

To account 20 “Main production” (23 “Auxiliary production”, 29 “Service production and facilities”);
to account 90-2 “Cost of sales”.

Fix the chosen method of writing off general business expenses in the accounting policy for accounting purposes (clause 7 of PBU 1/2008, clause 20 of PBU 10/99).

In the first case, general business expenses form the “full” cost of finished products and are written off at the end of the month.

Reflect the write-off of general business expenses (after distribution) by posting:

Debit 20 (23, 29) Credit 26
– general business expenses associated with the activities of the main (auxiliary, servicing) production are written off.

In the second case, a “reduced” cost of finished products is formed, and general business expenses are completely written off for sales, regardless of how many products were sold in the reporting period.

At the moment of transfer of ownership of the shipped products (results of work or services) to the buyer, reflect the proceeds from its sale and write off the cost of the products (work, services) sold:

Debit 62 Credit 90-1
– revenue from the sale of products is reflected;
Debit 90-2 Credit 43
– the actual cost of shipped products (work performed, services rendered) is written off;
Debit 90-3 Credit 68 subaccount “VAT calculations”
– VAT is charged on sales proceeds.
At the end of the month, write off the amount of general business expenses:
Debit 90-2 Credit 26
– general business expenses are included in the cost of sales.

Accounting

Chapter 8. Accounting for the production process

Accounting and distribution of indirect costs

Indirect costs cannot be attributed to the release of specific products; they are associated with the maintenance and management of main production. Accounting for indirect costs is carried out on accounts 25 “General production expenses” and 26 “General expenses”.

Active account 25 “General production expenses” records costs that are associated with servicing the main or auxiliary production. The following types of expenses are reflected on the debit of account 25:

• shop expenses for the maintenance and operation of equipment;
• wages for service personnel;
• costs of heating, lighting and maintenance of premises;
• payment of lease of fixed assets;
• deductions for depreciation and repair of general production equipment;
• costs for insurance of property for industrial purposes and other expenses similar in purpose.

Active account 26 “General business expenses” records costs that are associated with managing the enterprise. The following types of expenses are reflected in the debit of account 26:

• costs of maintaining management staff and general economic services;
• deductions for depreciation and repair of general economic assets;
• expenses for payment of information, auditing, consulting and other services;
• payment for rent of property intended for general business needs and other expenses similar in purpose.

Chart of accounts 25 “General production expenses” and 26 “General business expenses”

At the end of each month, accounts 25 “General production expenses” and 26 “General operating expenses” are closed and the amount of costs is ultimately written off to account 20 with the following entries.

DEBIT 20 “Main production” CREDIT 25 “General production expenses”;

DEBIT 20 “Main production” CREDIT 26 “General expenses”.

Accounts 25 and 26 do not have a balance and are not reflected in the balance sheet.

Example 8.2. Accounting for production costs.

During the month, production costs are reflected in the transaction log (Table 8.2).

1. Determine the amount of overhead and general economic costs.
2. Calculate the cost of products delivered to the warehouse.

Table 8.2

1. Materials written off: a) to main production b) for setting up equipment c) for management needs	25000 4300 3800	20 25 26	10 10 10
2. Salary accrued: a) workers of main production b) equipment adjusters c) administrative staff	40000 10000 15000	20 25 26	70 70 70
3. Social tax on wages has been calculated (35.6%): a) workers of primary production b) equipment adjusters c) administrative personnel	14240 3560 5340		69 69 69
4. Depreciation accrued: a) equipment in the main production b) fixed assets for general production purposes c) building fences d) administration buildings e) director's cars	8000 3700 400 2300 340	20 25 25 26 26	02 02 02 02 02
5. Invoices accepted: a) for utilities b) for the services of the information center c) for advertising about employment	3500 1800 2200	25 26 26	60 60 60
6. At the end of the month, overhead costs are written off as production costs
General production expenses written off At the end of the month, general business expenses are written off as production costs
8. Finished products are written off to the warehouse (there is no work in progress at the end of the month)

1. To determine the amount of general production and general business expenses, it is necessary to collect and close accounts 25 and 26.

1c) 3800
2c) 15000
Sv) 5340
4d) 2300
4d) 340
5b) 1 800
5c) 2200

Total, the amount of expenses for account 25 was 25,460 rubles, for account 26 - 30,780 rubles.

2. To determine the cost of finished products delivered to the warehouse, you need to collect and close account 20, provided that there is no work in progress at the beginning and end of the month.

Account 20 “Main production”

1a) 25000 2a) 40000 For) 14240 4a) 8000 6) 25460 7) 30780

In total, the cost of finished products delivered to the warehouse amounted to 143,480 rubles.

Currently, indirect costs make up the majority of costs, and in a number of industries, particularly mechanical engineering and metalworking, their share in the total costs often exceeds the entire amount of direct costs, so their importance is great both from the standpoint of accounting and cost distribution. In addition, for the correct formation of the cost of finished products, the distribution of indirect costs between the cost of individual types of products is important. In the case when several types of products are produced, indirect costs are written off to the cost of finished products in a certain ratio. Several options are offered for the distribution and write-off of indirect costs, for example proportionally:

• direct costs for each type of product;
• wages for the production of each type of product;
• sales revenue by type of product.

Example 8.3. Accounting and distribution of indirect costs.

During the month, the following costs associated with the production of two types of products A and B are reflected (Table 8.3).

1. Determine the amount of direct and indirect costs (Table 8.4).
2. Distribute indirect costs for products A and B in proportion to the wages of production workers.

Table 8.3

1. The amount of direct costs on account 20 consists of the cost of materials and wages for the manufacture of products and amounts to 19,000 + 60,000 = 79,000 (r.).

Table 8.4

The total salary amounted to 60,000 rubles. It is distributed to products A and B in proportions of 30 and 70%, respectively.

The amount of indirect costs on accounts 25 and 26 is the sum of the salaries of administrative personnel and equipment adjusters and amounts to 10,000 + 15,000 = 25,000 (rub.).

2. We write off indirect costs for products A and B in proportion to direct wages for the manufacture of products, i.e. in the following proportion: 30% for the manufacture of products A - 7000 rubles. and 70% for the manufacture of products B - 17,500 rubles.

Amounts of accrued wages

20. For the amount of accrued temporary disability benefits to a workshop employee, starting from the fourth day of illness, the following entry is made in the accounting records:

1. Dt 25 “General production expenses” Kt 70 “Settlements with personnel for wages”

2. Dt 69 “Settlements for social insurance and security” Kt 70 “Settlements with personnel for wages”

3. Dt 26 “General business expenses” Kt 70 “Settlements with personnel for wages”

4. Dt 70 “Settlements with personnel for wages” Kt 69 “Settlements for social insurance and security”

21. The issuance of wages to employees from the organization’s cash desk is reflected in accounting by the entry:

1. Dt 70 “Settlements with personnel for wages” Kt 51 “Cash accounts”

2. Dt 70 “Settlements with personnel for wages” Kt 50 “Cash desk”

3. Dt 51 “Settlement accounts” Kt 70 “Settlements with personnel for wages”

4. Dt 50 “Cashier” Kt 70 “Settlements with personnel for wages”

Task 8.2 According to the employment contract, a worker in the main production workshop is given a salary of 25,000 rubles. During the reporting month, the employee worked 15 working days. The standard working time in the reporting month is 19 days.

Calculate the amount of the worker’s wages and reflect its accrual in the organization’s accounting records (Table 8.1).

Table 8.1

Task 8.3 According to the employment contract, the deputy head of the organization’s supply department has an official salary of 27,500 rubles. Out of 22 working days according to the schedule of the reporting month, 17 days were fully worked. According to the order of the manager, the deputy head of the supply department is paid a bonus in the amount of 50% of the official salary based on the results of work for the reporting month.

Calculate the amount of the employee’s salary and reflect its accrual in the organization’s accounting records (Table 8.2).

Table 8.2

Calculation of employee wages for the reporting month

Task 8.4 The piecework worker produced 400 units of products during the reporting month. The established hourly tariff rate is 200 rubles, the production rate is 4 units of production per hour.

Calculate the amount of the worker’s wages and reflect its accrual in the organization’s accounting records (Table 8.3).

Table 8.3

Calculation of worker's wages for the reporting month

Task 8.5 According to the employment contract, a repair shop worker is given a monthly salary of 30,000 rubles. Normal working hours in the reporting month are 151 hours. In fact, 156 hours were worked in the reporting month, including 2 days of overtime (2 and 3 hours).

Calculate the amount of the worker’s wages and reflect its accrual in the organization’s accounting records (Table 8.4).

Table 8.4

Calculation of worker's wages for the reporting month

Data for payroll and other payments	Calculation procedure	Base
Official salary (basic), rub.	Employment contract
Number of working hours	Production calendar
Hourly tariff rate, rub	30000:151=198,68	Calculation
Salary payment, rub.	198,68*151=30000	Calculation
Number of hours actually worked	Time sheet
Additional payment for work within the first two hours of work	2*198,68*1,5*2=1192,08	Help-calculation
Supplement for every third hour	198,68*2=397,36	Help-calculation
Total accrued, rub.	30000+596,02+1192,08=31788,1
Reflection in accounting	31788,1	Dt 23 Kt 70

Task 8.6 The manager of the organization was granted regular leave from July 15, 201X, lasting 28 calendar days. The payroll period (from July of the previous year to June of the current year) was worked out by the employee in full. The employee's salary is 30,000 rubles. In addition, during the billing period, the employee was accrued quarterly bonuses: for the third quarter. the previous year - 25,000 rubles, for the fourth quarter of the previous year - 30,000 rubles, for the first quarter of the reporting year - 30,000 rubles, for the second quarter of the reporting year - 40,000 rubles.

Calculate the amount of the employee’s vacation pay and reflect its accrual in the organization’s accounting records (Table 8.5).

Table 8.5

Task 8.7 The driver of the organization's motor transport section was granted regular leave from September 23, 201X, lasting 14 calendar days. The payroll period (from September of the previous year to August of the reporting year) was fully worked by the employee. The employee is provided with a piecework-bonus wage system. The accrued amounts of wages for the billing period were:

— September of the previous year — 40,000 rubles;

— October of the previous year — 42,000 rubles;

— November of the previous year — 45,000 rubles;

— December of the previous year — 50,000 rubles;

— January of the reporting year — 38,000 rubles;

— February of the reporting year — 41,000 rubles.

— March of the reporting year — 48,000 rubles;

— April of the reporting year — 52,000 rubles;

— May of the reporting year — 45,000 rubles;

— June of the reporting year — 47,000 rubles;

— July of the reporting year — 55,000 rubles;

— August of the reporting year — 52,000 rubles.

In addition, during the billing period, the employee was awarded an annual bonus for production performance in the amount of RUB 80,000.

Calculate the amount of the employee’s vacation pay and reflect its accrual in the organization’s accounting records (Table 8.6).

Table 8.6

Calculation of the amount of employee vacation pay

Task 8.8 An employee of the organization was sick from April 1 to April 11, 201X (11 calendar days). The temporary disability certificate was submitted to the accounting department for payment on April 12, 201X. The employee's official salary was 20,000 rubles in 201(X-2), and 30,000 rubles in 201(X-1). The employee was paid bonuses: for 201(X-2) - an annual bonus of 107,000 rubles, for 201(X-1) - an annual bonus of 160,000 rubles.

The billing period has been fully worked out. Employee's insurance period

the period of incapacity for work is 6 years and 9 months.

Calculate the amount of temporary disability benefits and reflect its accrual in the organization’s accounting records (Table 8.7).

Table 8.7

	Calculation procedure	Base
	(20000*12+107000)+(30000* 12+160000)=347000+52000=	Calculation
The amount of wages accepted for calculating benefits for the billing period based on comparison with the maximum value for calculating insurance contributions to the Social Insurance Fund of the Russian Federation	347000+512000=	Limit values ​​of the base for calculating insurance premiums: in 2012 - 512,000 rubles. in 2011 - 463,000 rubles.
	(859000:730)=1176,71	Calculation
	1176,71*80%=941,37	Calculation
	941,37*11=10355,07	Calculation
	2824,11	Dt 20 Kt 70
	7530,96	Dt 69.1 Kt 70

Task 8.9 The young specialist was hired on December 6, 201Xg. In February of the following year, he fell ill and was issued a certificate of incapacity for work for the period from February 2 to February 15, 201 (X + 1). Actual earnings in the billing period (from December 6 to December 31 of the previous year) amounted to 18,200 rubles. The employee's insurance period is 2 months.

Calculate the amount of temporary disability benefits and reflect its accrual in the organization’s accounting records (Table 8.8).

Table 8.8

Calculation of the amount of benefits for temporary disability of an employee

Data for calculating the amount of temporary disability benefits	Calculation procedure	Base
Calculation period for calculating benefits	58 days	Federal Law No. 255-FZ of December 29, 2006
Amount of accrued wages for the billing period for calculating benefits, rub. print version	18200+18200=36400	Calculation
The amount of wages accepted for calculating benefits for the billing period	Calculation
Average daily earnings for calculating benefits, rub.	36400:58=627,586	Calculation
Amount of daily benefit taking into account the insurance period, rub.	627,586*60%=376,55	Calculation
Amount of benefit for the entire period of incapacity, rub.	376,55*14=5271,7	Calculation
Reflection in accounting of the amount of benefits at the expense of the organization’s funds	376,55*3=1129,65	Dt 20 Kt 70
Reflection in accounting of the amount of benefits at the expense of the Federal Social Insurance Fund of the Russian Federation	4142,05	Dt 69.1 Kt 70

Task 8.10 In accordance with the employment contract, a salary of 40,000 rubles is set for an employee of the financial department. January 201X has been fully worked out. Based on the results of work, the employee is awarded a monthly bonus in the amount of 30% of the salary. The employee has a son aged 6 and pays child support from his first marriage. From the amount of the employee's accrued wages, deductions are made to extra-budgetary social funds - the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation and the Compulsory Medical Insurance Fund of the Russian Federation.

Reflect in the accounting records the calculation of wages and bonuses to the employee, the withholding of the amount of personal income tax, the withholding of alimony, accrued amounts to extra-budgetary social funds and their payment, as well as the issuance of wages from the cash register to the employee (Table 8.9).

Table 8.9

Journal of registration of facts of economic life

Account 25 “General production expenses” displays all the organization’s costs aimed at servicing main and auxiliary production, subject to distribution.

At the end of the month, overhead expenses are written off by posting

Separate display of information on production costs makes it possible to analyze costs more deeply in order to minimize them and accurately attribute them to specific manufactured products.

25 account in accounting is a collective summary of information about all funds spent aimed at servicing production and subject to subsequent distribution. Turnovers for the current period display important information:

1. Salaries of employees (exception - enterprise management bodies);
2. Equipment costs (rent payments for fixed assets accepted for temporary use, repair work);
3. Depreciation of fixed assets and intangible assets;
4. Cost of materials and spare mechanisms purchased for servicing main production equipment;
5. Transport services, etc.

That is, the account displays expenses common throughout the organization that directly affect the production process, but are subject to further distribution by type of activity performed. Subsequent division of costs gives a more in-depth assessment of the cost of each type of product produced in various production departments.

Account 25 in accounting is active, that is, the debit shows the incurred general production costs, for example, writing off used inventory items for the purpose of servicing the activities being carried out, and the credit corresponds with production accounts to include the money spent in the cost of manufactured products.

Attention! Account 25 is closed monthly by transferring amounts to cost items for inclusion in the cost of production of main or auxiliary production. The distribution method is determined by enterprises independently (must be reflected in the accounting policies)

Analytical monitoring

Analytical analysis of overhead costs is carried out by cost items and departments. Expenses are displayed separately for each department or production workshop based on closing documents, the share of materials attributable to this area, department wages, etc.

Attention! Direct costs for ensuring production are charged directly to the account. 20 in correspondence with the relevant invoices.

Normative base

Using the account 25 in accounting is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, PBU 10/99 “Organization Expenses” and other legally approved documents.

Basic business operations

1. Depreciation calculation

   Dt 25 Kr 02 - for equipment intended for industrial activities;

   Dt 25 Kr 05 - for intangible assets

2. Transfer of purchased inventory and household equipment for maintenance and repair of equipment
3. Carrying out calculations for wages of industrial departments with the exception of administrative personnel

   Dt 25 Kr 70 - employee wages;

   Dt 25 Kr 69 - calculation of mandatory contributions to social funds from the amounts of accrued wages

4. Write-off of overhead costs for inclusion in the cost of manufactured products, depending on the type of activity performed

   Dt 20 Kr 25 - main production;

   Dt 23 Kr 25 - auxiliary production;

   Dt 29 Kr 25 - servicing production.

Lyudmila Poberezhnykh, 2017-01-03

Questions and answers on the topic

No questions have been asked about the material yet, you have the opportunity to be the first to do so

Reference materials on the topic

For servicing main and auxiliary productions, they are accounted for separately on the account.

¨ depreciation and costs for repairs of fixed assets and other property used in production;

¨ expenses for insurance of the specified property;

¨ expenses for heating, lighting and maintenance of premises used for main and auxiliary production;

¨ rent for premises, machinery, equipment and others used in production;

¨ remuneration for workers engaged in production maintenance (foremen, shop managers, technologists, workers performing maintenance and repair of technological equipment, if such maintenance is not carried out by special structural units classified as auxiliary production, and others)

¨ other expenses similar in purpose.

These expenses are collected from the debit of account 25 “General production expenses” in correspondence with the credit of the corresponding accounts:

Account correspondence
Debit	Credit
		Cost of materials, spare parts used for maintenance and repair of equipment
		Calculation of depreciation on fixed assets used in main and auxiliary production
		Payment of utilities, other expenses for maintaining premises, rent for premises, equipment, etc.
		Payroll
		Calculation of unified social tax and contributions for insurance against accidents and injuries

If account 25 takes into account indirect costs associated with servicing both the main and auxiliary production, the corresponding subaccounts are entered, for example 25-1 “Overhead production costs of the main production” and 25-2 “Overhead production costs of auxiliary production”. At the end of the month, account 25 “General production expenses” is closed. Expenses recorded in subaccounts are written off to the debit of the corresponding accounts:

Account correspondence
Debit	Credit
		General production expenses related to main production were written off
		General production expenses related to auxiliary production were written off

If general production expenses cannot be initially attributed to the main or auxiliary production, then their total amount is subject to distribution between the appropriate accounts.

In addition, accounting for overhead costs can be kept in separate sub-accounts opened for individual departments or by type of product. If there is no such division, then general production expenses when written off are distributed according to the types of products produced. Methods of distribution can be different - in proportion to the wages of production workers, in proportion to the amount of direct expenses, in proportion to the volume of products produced (in kind or in value terms), in proportion to the proceeds from the sale of products, and others. Depending on the chosen method of distribution, the amount of overhead costs written off for different types of products may be different.

Example.

The organization produces two types of products. The total amount of general production expenses to be written off to the main production account is 300,000 rubles. Let's consider the most common ways of distributing expenses - in proportion to the wages of production workers and in proportion to the amount of direct expenses.

Index	Product 1	Product 2	Total
Salaries of main production workers, rubles
Share in the total
Amount of direct expenses, rubles
Share in the total
Distribution of overhead costs, rubles

As can be seen from the example, in order for the generated product cost to have a reliable value, you need to carefully consider the choice of cost distribution method.

For example, if the wages of workers do not depend on the volume of output (time-based wages), and the change in the amount of direct costs is largely determined by the amount of raw materials used, then it is advisable to distribute costs in proportion to the amount of direct costs.

If the amount of workers’ wages directly depends on the volume of output (), then the method of distribution proportional to workers’ wages will give more accurate results.

End of the example.

You can find out more about issues related to the specifics of accounting and tax accounting in production in the book of JSC “BKR-Intercom-Audit” “ Production».

General production expenses— these are the costs of maintaining, organizing and managing production (main, auxiliary, servicing).

These include: costs of maintaining and operating machinery and equipment; depreciation charges and costs for repairs of property used in production; costs for heating, lighting and maintenance of premises; rent for premises; remuneration of workers engaged in production maintenance; other expenses similar in purpose.

General production expenses are reflected in the debit of account 25 “Overhead production expenses” from the credit of accounts for accounting for production inventories, settlements with employees for wages, etc.
D25 K02,05,10,21,60,76,70,69... The amount of overhead costs is taken into account.

Expenses recorded on account 25 are written off to the debit of accounts 20 “Main production”, 23 “Auxiliary production”, 29 “Service production and facilities”; the organization establishes the distribution procedure independently (for example, in proportion to direct production costs or wages of production employees).

D20 K25 General production expenses related to the activities of the main production were written off
D23 K25 General production costs associated with auxiliary production activities were written off
D29 K25 General production expenses associated with the activities of service production were written off

Analytical accounting of general production costs is carried out for each workshop in the cost accounting sheets of workshops (form No. 12), which are filled out on the basis of primary documents and development tables for the distribution of materials, wages, auxiliary production services, etc.

General running costs— expenses not related to the production process.

These include: administrative and management costs; maintenance of general business personnel; depreciation charges and expenses for repairs of fixed assets for management and general economic purposes; rent for general business premises; expenses for payment of information, auditing, consulting, etc. services; other administrative expenses similar in purpose.

General business expenses are reflected in the debit of account 26 “General business expenses” from the credit of accounts for inventory, settlements with employees for wages, settlements with other organizations (individuals), etc.
D26 K02,05,10,21,60,76,70,69... The amount of general business expenses is taken into account.

Analytical accounting of general business expenses is carried out in the statements of accounting for general business expenses, deferred expenses and non-production expenses (Form No. 15), which are compiled on the basis of primary documents and development sheets.

General business expenses are written off depending on the method of cost formation.

1. If finished products are accounted for at full production cost, then the expenses recorded on account 26 are written off to the debit of accounts 20 “Main production”, 23 “Auxiliary production”, 29 “Service production and farms” (if auxiliary and service production and farms performed work and outsourced services).
2. If reduced cost is used, then expenses from account 26 are immediately written off to subaccount 90-2 “Cost of sales”. Accounts 25 and 26 are closed at the end of the month and have no balance.

If the enterprise uses a workshop production management structure, then to account for general production (shop) expenses it is customary to use collection and distribution account 25 “Overhead production expenses”.

Postings for accounting for production costs

It records the following expenses: wages of engineers, employees, junior service personnel; unified social tax and insurance contributions to the Pension Fund of the Russian Federation; for the maintenance and repair of industrial buildings and equipment; for depreciation of workshop buildings; to ensure normal working conditions and safety precautions; losses from downtime; other expenses for maintaining workshop laboratories, etc.

During the month, the debit of account 25 writes off the expenses of the workshop from the credit of material, settlement and other accounts in correspondence with the credit of account 10 “Materials”, account 70 “Settlements with personnel for wages”, account 69 “Calculations for social insurance and security”, account 71 “Settlements with accountable persons”, account 60 “Settlements with suppliers and contractors”, etc.

General production expenses for each workshop at the end of the month are distributed into two main groups: divisions and products. In this case, the main distribution functions should be taken into account:

1) collection of information on costs by responsibility centers (structural units (shop, production site, team) in which information on the costs of acquiring assets and expenses is accumulated);

2) allocation of costs (cost allocation is the process of assigning incurred costs to a specific cost object) to a specific object (organizational unit or product);

3) ensuring objective planning, rationing, cost forecasting, accounting and analysis of possible deviations;

4) determining the results of the activities of the structural divisions of the enterprise to reduce the cost of production;

5) identification of cost reduction reserves for each group: division, product.

If an enterprise produces several types of products, then when calculating the cost of each type of product, the problem arises of assigning production overhead costs to a specific type of product. Traditional allocation methods involve first allocating manufacturing overhead costs to manufacturing and non-manufacturing (support and service departments) divisions, and then to product types. The procedure for allocating overhead costs is carried out based on the selected distribution bases and the method of current accounting of overhead costs.

___________________________________________________________________________________________

General production expenses distribution base - an indicator that most accurately links general production indirect costs with the volume of finished products.

In traditional cost attribution systems, the most used factors are: the number of man-hours worked, hourly wage rates, the amount of accrued wages of production workers (it should be noted that with the increasing automation of production, the importance of direct costs for wages of main workers decreases), the number of machines hours - the duration of the process (in the process of automation, these factors better reflect the pattern of accumulation of overhead costs), features of the parameters of the product manufacturing technology, etc.

The selection of the distribution base is carried out by an accountant-analyst. For example, if the wages of production workers occupy a larger share of production costs, then it can serve as a distribution factor, or production is material-intensive, then the cost of basic materials can serve as a distribution factor. This is a very important issue, since its solution affects the cost of production, therefore, when choosing a distribution base, one should take into account the economic meaning of the factor, be guided by the content of industry guidelines for accounting, planning and calculating costs, and take into account the peculiarities of the production and commercial activities of the enterprise.

The basis for allocating costs usually remains unchanged for a long time, since it is an element of the enterprise's accounting policy.

The process of allocating overhead costs to products occurs in several stages:

1) first, overhead costs are distributed among workshops - costs are distributed to production units and non-production (service) units according to the selected distribution factor. For example, if the factor “heating with natural gas” is considered, then the distribution of costs is carried out in proportion to the volume of heated premises;

2) overhead costs of service departments are distributed among production departments, taking into account the factor of “volume of services” consumed by the main departments;

3) the total overhead costs of the main production areas are distributed according to orders passing through this workshop, then - by type of product. In this case, each production department can use its own overhead cost distribution factor.

Overhead costs are reflected in special statements that allow you to analyze types of costs and compare them with planned costs.

To distribute the costs of non-production departments between production departments, the following methods are most often used:

- direct cost sharing(applies if non-production departments do not provide services to each other);

- sequential, or step-by-step, distribution(used if non-production departments provide services to each other unilaterally);

— two-way, or mutual, distribution(used if there are two-way mutual connections between non-production departments).

_______________________________________________________________________________________

Direct distribution method.

Costs for each service department are allocated directly to production areas. Costs are allocated in proportion to the chosen allocation base (for example, the percentage of consumption by a production unit of the services of a non-production unit). This base remains unchanged over a long period, which should be reflected in the accounting policies of the organization.

__________________________________________________________________________________________

Method of sequential, or step-by-step, distribution.

The general principle of cost allocation is as follows:

1) costs are determined for each non-production division;

2) a distribution base is selected (for a garage - vehicle mileage, for a laboratory - the number of tests performed, etc.);

3) the costs of non-production departments are distributed between production departments:

a) the costs of a non-production unit that provides services to other non-production units unilaterally are distributed between them in proportion to the selected distribution base, after which they are not taken into account in the further distribution process;

b) the costs of the remaining non-production divisions are then distributed among the main production divisions, with the production division consuming most of the services of the non-production division being proportionately assigned the majority of the costs of that division.

____________________________________________________________________________________________

Method of two-way, or reciprocal, distribution.

Cost distribution is carried out in stages:

1) an indicator is selected that acts as a distribution base (for example, direct costs);

2) the ratios between the segments involved in the distribution of costs are calculated;

3) the costs of non-production departments are calculated, adjusted taking into account the two-way consumption of services;

adjusted costs are distributed among responsibility centers

The enterprise's costs are subject to inclusion in the cost of production of work and services of the reporting period to which they relate, regardless of the time of their payment - preliminary or subsequent.

In the Chart of Accounts, Section III “Production Costs” is intended to summarize information on expenses for ordinary activities of the enterprise, which, in accordance with PBU 10/99, include enterprise costs attributable to goods, products sold in the reporting period, work performed and services provided.

Also, PBU 10/99 states that for management purposes, accounting organizes the accounting of expenses by cost items. The list of cost items is established by the organization independently.

At this enterprise, the nomenclature of cost items is as follows: material costs, wages, social contributions, depreciation of fixed assets, and other expenses. In accordance with the existing nomenclature of cost items and accounting tasks, work is organized in the organization’s accounting department. Accounting work is divided into several sections:

— accounting of cash and non-cash payments;

— accounting of fixed assets;

— accounting of wages and unified social tax;

— accounting of materials;

— accounting with suppliers and customers;

— accounting for production costs;

— accounting for other expenses and income;

— accounting of financial results.

Costs are accounted for on account 20 “Main production”. Each contract (order) has its own sub-account. Costs are collected in these sub-accounts and form the cost price (contract) for direct costs.

Direct ones include: wages, unified social tax for this wage, materials. Costs in account 26 “General business expenses” include administration salaries, unified social tax for it, depreciation of vehicles, depreciation of fixed assets, travel expenses, rent, utilities. And the costs of maintaining and operating machinery and equipment; depreciation charges and costs for repairs of fixed assets and other property used in production; remuneration of workers engaged in production maintenance on account 25 “Overall production costs”.

3. Accounting for production and management maintenance costs and methods for their distribution by type of product (work, service) at Ion LLC

3.1 Production costs

Costs for production of products in accounting are collected in accounts: 20 “Main production” 23 “Auxiliary production”, 25 “General production expenses”, 26 “General business expenses”, account 28 “Defects in production” and 29 “Service production and farms”.

In small commercial enterprises there is no need to use all the variety of production accounts. Most often they are limited to 20 accounts.

For example, if the cost of manufactured products includes a large share of amounts in account 26 , We need to review general business expenses and try to reduce them. After all, these costs are not decisive in the production cycle.

Amounts of costs from auxiliary accounts 23, 25, 26, 29 at the end of the month should be written off to the main production account (account 20), on which the production cost of products is determined.

The distribution of general business expenses (which includes the cost of administrative salaries) among individual orders may result in these expenses being frozen in the warehouse as part of batches of unsold finished products.

Therefore, it is customary to write off all general business expenses directly to sales without corresponding redistribution.

Production costs can be grouped by stages of the production process, by divisions (shops) of the enterprise, by costing items, by types of products, by cost items. The main thing is that the procedure established by the enterprise meets the requirements of the law.

To calculate the cost of each type of product, the organization's expenses are taken into account and grouped by costing items. Costing is carried out using various methods.

The costing method is a set of methods and techniques for calculating the unit cost of individual types of products. The technological process and calculation objects at each enterprise are determined in advance by technological documentation or estimates, depending on industry characteristics.

With all costing options, it is necessary to separate costs by the periods for which they are calculated, by types, places of formation and objects of calculation. In addition, when calculating the cost of production, it is necessary to take into account the balances of work in progress and finished products.

The choice of calculation method depends on the type of production, its complexity, the presence of work in progress, the duration of the production cycle, and the product range.

The following methods for calculating product costs are distinguished:

• custom - the object of calculation is the product (product);
• cross-cutting (process-by-process) - the object of calculation is the production process (section, segment of technology);
• regulatory - the object of accounting and calculation is a separate production order;
• boiler - there is no calculation object.

Thus, depending on the purposes of the calculation of the calculation method, the object can be either a finished product (product), or an unfinished product or a separate operation.

In other words, the difference between the methods lies in the fact that costs are distributed either across products (products), or across processes (processes), or are not distributed at all.

3.2 Procedure for distribution of general production

and general business costs by type of product

Costs can be grouped according to different criteria: by type of expense, by place of origin, by economic role in the production process, etc.

Let's consider the classification of costs according to the method of their inclusion in the cost of products (works, services). On this basis, costs are divided into direct and indirect.

Direct costs are costs associated with the production of a particular type of product (performing certain works, providing certain services), which can be directly included in the cost of these products (works, services). These include, in particular, costs:

— for raw materials and basic materials;

— purchased products and semi-finished products;

— fuel and electricity;

— remuneration of main production workers (with deductions);

— depreciation of production equipment.

Indirect costs are costs that are associated with the production of several types of products (works, services). They cannot be directly attributed to a specific type of product. Therefore, they are distributed by type of product indirectly (conditionally) according to the indicators provided for in the organization’s accounting policies, using pre-calculated coefficients. Indirect expenses include general production and general business expenses.

At first glance, it may seem that it is not at all difficult to distribute direct costs by type of product.

General production expenses written off

The main thing is to establish a correspondence between the products produced and the direct costs incurred. However, if several types of products are produced in one workshop using the same equipment using the same materials, it is not so easy to distribute direct costs. In this case, direct costs are distributed in proportion to the standards developed by employees of the technological and planning departments.

The process of allocating indirect costs in production can occur in two stages. At the first stage, indirect costs are distributed according to the place of their occurrence, in particular between workshops, divisions or departments. At the second stage, they are redistributed by type of product. An important point in this process is determining the distribution base (indicator). For example, to distribute administration salaries, the number of employees can be used as such a base, for heating and electricity - the area of ​​the premises, for water supply - the area of ​​​​the premises or the number of employees, for sales and marketing costs - direct costs. In any case, the distribution of indirect costs should not require much effort and calculations.

The method of distributing indirect costs between types of products, works and services must be enshrined in the accounting policies of the organization.

The choice of method for distributing indirect costs determines the reliability of the calculation of unit costs. Numerous multidirectional factors do not allow us to recommend stable methods of distributing indirect costs that are acceptable for many enterprises. Absolute adequacy of their distribution is known to be very difficult to achieve. There are many methods of distribution, all of them are not absolutely certain and accurate.

It is advisable to divide the factors influencing the choice of the base for distribution of indirect costs into technological and organizational ones.

Technological factors determine the participation of means of production in the formation of the product, the structure of the cost, the value and ratio of its individual elements, the relationship of the component parts of costs. Organizational factors determine the procedure for accounting for indirect costs at points of origin and cost centers, the choice of distribution indicator and the sequence of calculations. The organization of direct accounting of indirect costs at the places of their occurrence, which makes it possible to bring the calculation objects closer to the corresponding groupings of indirect costs, gives more accurate results.

Approaches to cost formation in financial and management accounting

In the financial accounting system the procedure for forming the cost price is regulated by the Regulations on the composition of costs for production and sales of products and on the procedure for the formation of financial results taken into account when taxing profits, as well as industry instructions on planning, accounting and calculating the cost of products. The cost price, formed taking into account the requirements of these documents, is subsequently the basis for tax calculations. It is used to determine the profit from sales of products for the enterprise as a whole. .

Accounting for general production and general business expenses

The cost price of a specific type of product is not shown or the average value is calculated.

In the management accounting system The procedure for determining the cost price is not so regulated. The cost price is formed not for tax purposes, but so that enterprise managers have a reasonable idea of ​​total costs. The cost may even include those costs that are not provided for in the Regulations on the composition of costs.

The distribution of overhead costs of an enterprise is carried out among two main groups: divisions and products. When distributing, the main distribution functions should be taken into account:

1.Collection of information on costs by responsibility centers(structural units (workshop, production site, team), where information about the costs of acquiring assets and expenses is accumulated).

2. Allocation of costs (allocation of costs- this is the process of assigning incurred costs to a specific cost object) to a specific object (organizational unit or product).

3.Provide objective planning, rationing, cost forecasting, accounting and analysis of possible deviations;

4. Determine the performance results of structural units enterprises to reduce production costs;

5.Identify reserves for cost reduction for each group: division, product.

If an enterprise produces several types of products, then when calculating the cost of each type of product, the problem arises of assigning production overhead costs to a specific type of product. The solution to this problem is related to the distribution of overhead costs relative to the selected distribution base. Let's consider the algorithm for the method of distributing overhead costs by type of product.

1) A base for the distribution of overhead costs is selected - an indicator that most accurately links general production indirect costs with the volume of finished products (the number of man-hours worked, hourly tariff rates, the amount of accrued wages of production workers, the number of machine hours - the duration of the process, etc.). etc.) It is possible to distribute factory overhead costs first among workshops, and then the overhead costs of a workshop are distributed among orders passing through this workshop, and then by type of product.

2) The total value of the selected distribution base is determined:

SZBr=S(Brk),

where Brk is the value of the distribution base for products of the kth type;

3) The standard coefficient of overhead costs Knor is calculated by dividing the value of overhead costs (OBSHZ) by the total value of the distribution base SZBr: Knor = OBSHCHZ / SZBr

4) Calculate overhead costs for each type of product (OBSHCHZpr) by multiplying the standard coefficient of overhead costs (Knor) by the value of the distribution base for a given product (BRk): OBSCHZk = Knor * BRk.

5) the estimated production cost of each type of product is determined by the formula: PRSk = PRMk+PRTk+OBSHCHZk,

where PRSk is the production cost of products of the k-th type, PRMk is direct material costs for products of the k-th type, PPTk is direct labor costs for products of the k-th type, OBShchZk is the general production costs for products of the k-th type.