You first classify the costs. Product manufacturing costs can be basically divided into three parts: materials, labor, and manufacturing expenses.
Raw materials: the main materials that make up the product, including the purchase price and transportation costs of the purchase.
Direct labor: salaries of personnel who work directly in the manufacture of products, salaries of employees in the production line.
Manufacturing costs are more troublesome because they include many elements.
Manufacturing expenses: expenses incurred to manufacture a product, but which do not occur directly on the product or cannot be specifically distinguished as to the part or product on which it is used.
Manufacturing expenses include: indirect labor (production department heads, livelihoods, quality inspection, floor cleanersbind, etc.), water and electricity (including lighting, mechanical electricity, crane air compressor and electricity of other public facilities), depreciation (depreciation of machinery and factory buildings), transportation costs, social expenses, insurance premiums, meal costs, travel costs, repair costs, taxes, other expenses, etc.
In terms of cost calculation, different calculation methods are adopted depending on different cost categories and production and processing techniques.
Raw materials: Generally, the weighted average cost of raw materials*amount of materials used is used.
Direct labor: provided by the personnel department, directly using calculated staff salaries. Some piece-rate companies adopt the piece-rate* method.
Manufacturing expenses: Different expenses are allocated differently. For examplee, water and electricity must be allocated to production lines and products, and each product must support them. Expenses such as transportation, travel, communications, insurance, and stationery are usually allocated based on production. Depreciation charges are generally calculated based on the production lines and then distributed between the products produced by this production line.
Tax cannot be included in the cost. If you make a bucket of water, the costs incurred are as follows:
Bucket 20 yuan, water 1 yuan, transportation fee 1.5 yuan, water and electricity The fee is 1 yuan, the The depreciation of the machine is 5 yuan and the labor cost is 3 yuan.
Then the bucket and water are the raw materials When you bought it, the supplier issued them. an invoice for a total of 21 yuan, including 3.05 yuan value-added tax. The cost ofs raw materials is then 17.95 yuan.
If your company pays shipping costs, they should also be included in the cost. Transportation costs are divided into deductible and non-deductible. If not deductible, raw material cost = 17.95+. 1.5 = 19.45 yuan.
The production cost of a bucket of water = 19.45+1+5+3=28.45 yuan.
If there is an additional 20 yuan in freight and handling fees during the sales process, should this be included in the cost? Strictly speaking, costs cannot be entered, because the costs we are talking about are usually only manufacturing or purchasing costs, and do not include expenses related to the sales process. Expenses related to the sales process are called sales expenses.
If we sell a bucket of water for 50 yuan, we will issue an invoice for 7.26 yuan, with an amount of 42.74 yuan and a tax of 7.26 yuan.
Situation bbeneficiary: turnover = cost of production - cost of sales = 42.74-28.45-20=-5.71