In order to form the cost of production, as well as to make managerial decisions, it is important to correctly allocate costs. The chosen procedure is used when calculating the profit tax. Although there is a list of expenses in the legislation, the Instruction for the use of the chart of accounts stipulates that under the item "Basic production" only amounts directly related to the output of the product should be displayed. About how it is more expedient to allocate direct and indirect costs, you will learn from this article.

Definition

Direct costs are costs associated with the manufacture of a certain type of product, which 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;
  • the cost of fuel and electricity;
  • wages of workers;
  • depreciation of equipment.

Indirect costs are the costs associated with the manufacture of products that can not be directly attributed to a particular type of work. They are distributed throughout the assortment. 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 type

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

Expenses related to the manufacture of products are reflected in the accounts 20 "Major", 23 "Auxiliary production". In their sections, analytical cost items are opened. The account is made out by such postings:

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

ДТ 20 КТ 28 - losses from marriage are taken into account.

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

  • expenses for the use of machinery and equipment;
  • depreciation and repair costs of operating systems used in production;
  • payment for utilities;
  • rent of premises, machinery and equipment used in production;
  • remuneration of employees.

In the chart of accounts, this is reflected as follows:

ДТ 25 КТ 02, 60, 69, 70 - the expenses for servicing the main production facilities were taken into account.

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

General running costs

  • administrative costs;
  • staff costs;
  • depreciation of general operating purposes;
  • rent of premises for office;
  • payment of information, audit and other services.

Such amounts are written off:

1) to account 20 and distributed by separate types of services;

2) to account 46 "Implementation" as a conditionally fixed cost.

At the end of the reporting period, turnover on DT20 reflects direct, variable costs for manufacturing products, show the actual cost price. The balance is the amount of unfinished production.

Calculation and analysis of direct costs

The parameters of the distribution of expenses should be fixed by the accounting policy of the organization. The financial result of the organization depends on the reasonableness of the chosen method. Let's consider a concrete example.

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

1. We will allocate indirect costs based on direct costs.

Let's calculate the sum of variable costs:

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

We calculate the cost price = (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.

Sales costs = 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

Let's 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 change by the same amount.

The choice of the costing method depends on the type of production, the technologies used and the features of the products. The method shown is applied if the products are produced 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 production in kind.

At large technological organizations, there are a number of units. They are engaged in the production of semi-finished products and are connected with each other by a single production process. At such enterprises, costs are recorded pro-process. First, the prime cost is calculated for each cycle, and then these figures are summed up and the final result is calculated.

Cons of the standard scheme

In a small enterprise, it is not difficult to allocate costs. But if several products are manufactured in one shop on a unit of equipment, then the process becomes more complicated. In this case, employees of the planning department should develop a write-off rate.

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

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

According to this classification, the same items of expenditure can be called direct in relation to certain objects and indirect ones to others. This method avoids excessive accumulation of variable costs. Example: on a certain group of equipment, several units of production are produced. Since the direct costs can not be calculated by the classical method, the expenses are written off into a group of general production methods. And in the next shop there is the same unit. But the cost of its maintenance is half that. Why is this happening? Because accounting policy has determined that costs are allocated only to products. But you can use other methods of classification. It's not even that the standard approach does not allow you to correctly calculate the cost price. The effectiveness of the business as a whole decreases.

Another example is the cost of sales. Usually they are also collected "in a heap" and distributed proportionally to the entire range. But from the point of view of business efficiency, it is necessary to monitor the "profitability" of not only products, but also customers. Only in this case it is possible to evaluate the success of sales channels and to abandon unprofitable ones.

Trade Organization

Purchased materials are accounted for at the purchase price on account 41. Transport costs are monthly redistributed between the goods sold and their balances in warehouses. Direct costs are calculated on the basis of the average interest, taking into account the balance at the beginning of the month.

The calculation procedure is as follows:

1. Determine the amount of stocks in the warehouse at the beginning of the month.

2. Calculate 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.

On ДТ of account 44, except for transport expenses, also are displayed:

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

The accrued expenses on account 44 are debited to account 90 debit.

Production costs associated with the manufacture of a certain type of products are included in the cost price. Depending on the cost allocation method chosen in the accounting policy, they can refer to direct and indirect. In a small enterprise, the process of crushing should not cause problems. In large technological organizations, the calculation is more expedient to produce in cycles. In other cases, a method is used to allocate costs by type of product.

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