In order to form the cost of production, as well as to make management decisions, it is important to correctly allocate costs. The chosen order is used when calculating the income tax. Although the legislation contains a list of expenses, the Instructions for use of the chart of accounts state that under the article “Primary production” only amounts directly related to output should be displayed. You will learn how it is more expedient to allocate direct and indirect costs from this article.

Definition

Direct costs are costs associated with the manufacture of a certain type of product that can be included in the cost price. These include:

  • the cost of raw materials and basic materials;
  • the price of purchased products and semi-finished products;
  • fuel and electricity costs;
  • wages of workers;
  • depreciation of equipment.

Indirect costs are the costs associated with the manufacture of products that cannot be directly attributed to a specific type of work. They are distributed throughout the range. The coefficients and indicators for which the classification takes place are laid down in the accounting policy.

Direct and indirect costs

Distribution of costs by product

This process depends on the sectoral organization and the chosen method of costing. It is important to properly establish the relationship between manufactured products and costs incurred. Indirect costs can be distributed in two stages. First, they are grouped by place of origin (shop, division or department). Then redistributed by types of products. It is important to determine the basis for the classification of costs. For example, when calculating the salary of an administration, the number of employees may be used, for calculating electricity, the area, etc.

Costs that are associated with the manufacture of products are reflected in the accounts 20 "Basic", 23 "Auxiliary production". In their sections open analytical cost items. Accounting is made by such transactions:

ДТ 20 (23) КТ 2, 4, 5 - expenses for production are written off;

DT 20 CT 28 - losses due to marriage are taken into account.

Indirect costs are reflected in the articles "General Production", "General" and "Sales Costs". The first group includes:

  • costs of using machinery and equipment;
  • depreciation and repair costs of operating systems used in production;
  • utilities fees;
  • rental of premises, machinery and equipment used in production;
  • remuneration of employees.

In the chart of accounts this is reflected as follows:

DT 25 КТ 02, 60, 69, 70 - expenses on maintenance of the main production are taken into account.

At the end of the month, the accumulated amounts are written off in DT 20 (23) in part, which is included in the cost of the main (auxiliary) production.

General running costs

  • administrative costs;
  • staff costs;
  • depreciation of fixed assets;
  • office space rental;
  • payment of information, auditing and other services.

Such amounts are written off:

1) at the expense of 20 and distributed to certain types of services;

2) at the expense of 46 "Realization" as conditionally fixed costs.

At the end of the reporting period, DT 20 reflects the direct, variable costs of manufacturing products, show the actual cost. Balance - the value of the unfinished production.

Calculation and analysis of direct costs

The cost allocation parameters should be fixed by the organization’s accounting policy. From the validity of the selected method depends on the financial result of the organization. Consider a specific example.

The company produced for the month 300 tables of type A and 250 - of type B. Direct production costs amounted to 225 thousand rubles. and 425 thousand rubles. respectively. The amount of indirect costs - 120 thousand rubles. In a month, 200 tables A and 100 pieces were sold. B.

1. Distribute indirect costs on the basis of direct.

Calculate the sum of variable costs:

  • A: 120 * 225 / (225 + 425) = 41.5 thousand rubles;
  • B: 120 * 425 / (225 + 425) = 76.1 thousand rubles.

Calculate the cost = (direct costs + variable costs) number of manufactured products:

  • A: 225+ 41.5 / 300 = 0.9 thousand rubles;
  • B: 425 + 78.1 / 250 = 2 thousand rubles.

Costs of sales = unit cost * number of goods sold:

  • A: 0.9 * 200 = 180 thousand rubles;
  • B: 2 * 100 = 200 thousand rubles.

TOTAL = 380 thousand rubles.

2. Evenly distribute indirect costs.

Calculate the sum of variable costs:

  • A: 120 * 300 / (300 +250) = 65.4 thousand rubles;
  • B: 120 * 250 / (300 + 250) = 54.5 thousand rubles;
  • A: 225+ 65.4 / 300 = 0.97 thousand rubles;
  • B: 445 + 54.5 / 250 = 1.99 thousand rubles.
  • A: 0.97 * 200 = 194 thousand rubles;
  • B: 1.99 * 100 = 199 thousand rubles.

TOTAL = 393 thousand rubles.

The difference between the calculations is 13 thousand rubles. The financial result of the company for the reporting period will be changed by the same amount.

The choice of costing method depends on the type of production, technologies used and features of the products. The shown method is applied if products are manufactured in batches. Then for each order a card is opened in which direct and indirect costs are displayed. The unit cost is calculated by dividing the amount received by the quantity of products in actual size.

At large technological organizations there are a number of departments. They are engaged in the release of semi-finished products and are connected to each other in a single production process. At such enterprises, costs are accounted for procedurally. First, the cost of each cycle is calculated, and then these figures are summed up and the final result is calculated.

Cons of the standard scheme

In a small business, it’s easy to distribute costs. But if in one workshop on a piece of equipment several types of products are made, the process becomes more complicated. In this case, the employees of the planning department should develop norms for write-offs.

Direct costs can be distributed not only on finished products, but also on:

  • structural units of the organization (directorates, departments, shops, etc.);
  • processes that occur within the company;
  • oS objects;
  • customers;
  • distribution channels, etc.

According to this classification, the same expenditure items can be called direct with respect to certain objects and indirect to other. This method avoids excessive accumulation of variable costs. Example: a certain group of equipment produces several units of production. Since it is impossible to calculate direct costs by the classical method, then expenses are charged to the general production group. And in the next shop is the same unit. But the cost of its maintenance is two times less. Why is this happening? Because accounting policies have determined that costs are allocated only to products. But you can use other methods of classification. The point is not even that the standard approach does not allow to correctly calculate the cost price. Decreases business efficiency in general.

Another example is sales costs. Usually they are also collected "in a pile" and are distributed proportionally to the entire range. But in terms of business performance, it is necessary to track the “profitability” of not only products, but also customers. Only in this case, it is possible to evaluate the success of distribution channels and to abandon unprofitable.

Trade Organization

Purchased materials are recorded at the purchase price on account 41. Transportation expenses are monthly redistributed between the goods sold and their stocks in warehouses. Direct costs are calculated based on the average percentage, taking into account the balance at the beginning of the month.

The calculation procedure is as follows:

1. Is determined by the amount of stocks in stock at the beginning of the month.

2. Calculates the cost of goods sold and the balance at the end.

3. The average percentage = (1) / (2).

4. Direct costs = average percentage * value of the balance at the end of the month.

For a DT account 44, in addition to transportation costs, the following are also displayed:

  • salary;
  • rent;
  • advertising;
  • delivery of goods to the buyer;
  • storage of goods;
  • representation costs, etc.

Accumulated expenses on account 44 are written off to account 90 debit.

Production costs associated with the manufacture of a particular type of product are included in the cost price. Depending on the cost-sharing method chosen in the accounting policy, they can be direct and indirect. In a small business, the crushing process should not cause problems. In large technological organizations, it is more expedient to make a calculation by cycles. In other cases, use the method of allocating costs by product.

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