You will need
- - cost accounting and direct costs;
- - assessing the finished product.
The finished products is a part of material-industrial stocks, which are designed to implement. Assessment of finished products is carried out according to the actual or planned cost of production. The cost of finished goods comprise or all of the costs, which are included in production costs or only direct costs, if indirect costs are written off from the account 26 to 90. Finished products are recorded in account 43, which is an appropriate name.
In practice, the methodology of evaluation of finished products at actual cost of production is used rather rarely, usually in small businesses where the product line is limited. For other types of production, this method is very time consuming. This is due to the fact that actual cost of finished goods is determined only at the end of the reporting month. And during this time is the movement of products. Therefore, to account for the use of the conditional evaluation of products at planned cost or selling price without VAT.
The use of prices is possible only if it is constant throughout the month. Otherwise, it is appropriate to account for the planned cost. Define it: planning Department based on actual costs of the previous period and the expected changes in the price level, introduces a kind of constant throughout the month account price.
Manufactured products are written off from the credit 23 debit 26. And the cost of finished goods shipped to customers with credit 26 debit 901. At the end of the month, calculate the actual production cost, determine the deviation of the valuation price from the actual cost of production and the deviation relating to sold products.