Cost of products sold. Production cost: formula. General view of the formula

Report on financial results are defined in clauses 18, 19 of PBU 10/99 and clauses 16, 23 of PBU 2/2008. In particular: - expenses are recognized taking into account their relationship with receipts (for example, the cost of performing work is recognized simultaneously with the recognition as income of proceeds from their sale); - if expenses cause the receipt of income over several reporting periods and the relationship between income and expenses cannot be clearly determined or determined indirectly, then they are recognized in the Statement of financial results by their reasonable distribution between reporting periods; - if an organization - a small business entity, recognizes the proceeds from the sale of products and goods not as the rights of ownership, use and disposal of the supplied products, released goods are transferred, but after the receipt of payment, then the expenses are recognized after the debt is repaid.

Cost of products sold

It should be noted that the cost of purchasing goods includes not only the cost of those goods, but also all costs associated with the purchase, such as shipping costs, insurance, customs duties, etc. Collectively, these costs are known as direct costs.

When determining the cost of goods sold, only net purchases are taken into account, that is, the value of returned goods and the amount of direct costs associated with them are not taken into account. Formula The methodology for calculating the cost of goods sold for a manufacturing enterprise differs from the methodology for a trading company.

Cost of goods sold: formula, methodology and calculation example

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Definition Cost of Goods Sold (COGS) is the cost of goods sold during the reporting period.


For a trading company, this is the sum of the costs of purchasing goods for resale that were sold during the reporting period. Cost of goods sold is calculated as a balance finished products at the beginning of the accounting period, plus the cost of products sold during the accounting period, less the balances of finished goods at the end of the accounting period.
Expired abstract costs, and thus actual costs for the year.

Cost of sales. line 2120

Nevertheless, in conditions of instability, one has to include certain risks associated with the release of products in the total cost. Cost formulas are used to determine the exact cost of manufacturing a unit.

The correctness of the calculation affects the future profit, therefore it must be calculated accurately and correctly. So, to determine economic efficiency use the formula of the total cost price (hereinafter PS).

It looks as follows: PS = ∑ costs of production + costs of selling products The PS formula is the main one, all the others represent its separate parts. This indicator indicates what the planned cost of the finished product will be.

What is the profit of the enterprise and its types

The overwhelming number of companies engaged in the production of various products always take into account tax deductions in the process of forming a single price. The only exception may be the presence of any tax privileges or tax holidays for a certain time interval.

back to contents Conclusion The cost of waste is one of the most accurate and effective tools for analyzing the entire production cycle of a company, regardless of whether a product is being created or a certain set of services is provided. One of the distinguishing features of the cost formula is its temporary versatility.
The calculation can be made in any convenient time frame, which gives ample opportunities to determine the profitability of the following development strategy, taking into account the seasonal factor.

Cost of sales - concept and calculation method

As a result, 125 thousand rubles were spent on frying pans:

• materials 100 thousand rubles;
• electricity 15 thousand rubles;
• a patch with deductions of 5 thousand rubles;
• depreciation 3 thousand rubles;
• other expenses - 2 thousand rubles.

For pots 61 thousand rubles:

• materials 50 thousand rubles;
• electricity 5 thousand rubles;
• a patch with deductions of 2.5 thousand rubles;
• depreciation 1.5 thousand rubles;
• other expenses - 2 thousand rubles.

The cost of the frying pan is 4 thousand rubles. (125/30), pots - 4.6 thousand rubles. (61/13). As a result of the sale, the company sold all the pans and pots. The total cost of goods sold is equal to the sum of the production costs of all goods, i.e. 186 thousand rubles Analysis of the results Analysis of the results of the calculation of the actual cost is carried out in order to identify the inefficiency of the use of resources.

Calculation of the cost of goods sold

The above formula is generalized and understandable to those who have already come across the costing of products. If you do not know what the terms are composed of, check out the detailed formula, which looks like this: Total cost price = СМР + PF + FER + ZOP + ZAUP + A + SV + PPR + SR + TR + RPS, where: СМР - material - raw material costs; PF - semi-finished products spent in production; FER - fuel and energy costs; PDO - salary of personnel of main and auxiliary industries; ZAUP - the salary of the administrative and managerial personnel of the company; A - the accrued amortization of the used fixed assets; SV - the amount of accrued insurance premiums; PPR - the amount of all other production costs; СР - the amount of sales expenses; TR - transportation costs; RPS - the amount of other sales costs.

The total cost of production is determined ...

These numbers are order codes.

• A copy of the notice of acceptance of the order for work is sent to the accounting department, where the calculation is carried out.
• The accountant draws up a card for accounting for the production of ordered products. It reflects the preliminary amount of costs.
• After the production of the product, the order is closed, the salaries of the employees are paid, and the shipment of materials is stopped.
• The buyer receives invoices for payment.

The custom-made method is convenient to use on small businesses where there is no prepayment.

This is the calculation of the cost of finished goods after the order is made. The total cost is divided by the volume of finished products.

Basic Formulas The definition of cost is not difficult to understand. Difficulties arise with the formulas for its calculation. The calculation of the cost of products is regulated by law.

• Waste sorting and logistics of the final product - five percent of the production cost.
• General economic waste - twenty percent of the wages of production workers.
• Waste on the wage line - forty percent to pay for basic production workers;
• Waste expenses of a general production nature - ten percent.
• Purchase of electricity and fuel for technological purposes - 1.5 thousand rubles.
• Purchase of materials, as well as raw materials used in the production process - three thousand rubles;
• Wage main workers - two thousand rubles.

The challenge lies in the need to determine the level of manufacturer's cost per unit of production, as well as the volume of income from its sale, in the case of an acceptable level of profitability within 15 percent.

Cost of sales balance sheet formula

Tax accounting presupposes the correct formation of the tax base for calculating the corporate income tax. According to the tax code (chapter 25), in order to find the tax base, the amount of the company's income can be reduced by the amount of expenses, with the exception of the list of costs presented in Art. 270.

Attention

Management and statistical types of accounting Management cost accounting is used for the purposes of the head of the enterprise. Cost samples, cost accounting criteria, cost formation parameters change depending on the management tasks.


For example, within management accounting you can track the cost of a new product, to make a decision on the feasibility of its further production and sale, you can monitor the work of a particular service in terms of the ratio of costs and incomes, or calculate the planned cost of the proposed project.
One of the most popular concepts of commerce, economics and entrepreneurship is the formula for the cost of creating and selling products. The indicator is explained as the total number of funds spent by the company for the production and subsequent sale of a service or product, in strict dependence on the sector of the economy in which the company operates. Payment: existing types and types of cost of waste Today, the cost is divided into marginal and average (in other words, full cost). Full cost, means the volume of all production waste of the enterprise, including commercial, aimed exclusively at the production process. The marginal cost indicator is the unit cost of the product created. Key types of costs:
• Shop.

In the process of conducting accounting and analysis of relevant structural units economic entity calculate indicators that characterize the efficiency of the enterprise. The calculated indicators also characterize the level of management efficiency of an economic entity, the ratio between the profit received and the costs incurred. One of these indicators is the cost of goods sold.

The concept of the cost of products that are sold

In a general sense, the cost of production is understood as the totality of all costs that are associated with the production and sale of products, and these costs are presented in monetary terms. In practice, there are cases when not all products that were produced for reporting period, immediately implemented in a given period of time. In this case, the cost of goods sold is calculated as a set of costs relative to the products that were sold in this reporting period.

The formula for calculating the cost of goods sold

In order to determine the indicator of the cost of products sold during the reporting period, it is necessary to calculate:

• full cost of manufactured products for the reporting period;
• carry-overs of those products that have not yet been sold.

To determine the carry-over of products that have not yet been sold, find the difference between the balances of finished products at the beginning and end of the reporting period.

Cost of goods sold - formula:

C \ C real. prod. = C \ C floor. prod. + Per. ost. GP,

where C \ C floor. prod. - indicator of the total cost of production, rubles;

Per. ost. GP - carry-overs of finished products, rub.

What is included in the total cost of products sold

Business entities incur costs:

• for raw materials, materials necessary for the production of a specific type of product;
• for the remuneration of those workers who are directly involved in the production of a certain type of product (with deductions for social needs);
• depreciation costs;
• costs associated with the management and organization of both production units and the entire economic entity;
• those costs associated with preparing for the production of new types of products;
• costs associated with the sale of finished products;
• other costs of the business entity.

The total cost of goods sold is the aggregate of all costs incurred by an economic entity for a specific period of time in the production of this product and its sale, excluding product balances that were not sold for a specific reporting period. The calculated indicator is qualitative, characterizing the level of use of resources available to an economic entity in the production and sale of products.

Cost of implementation: an example of calculation

Here is an example of calculating the cost indicator, provided that the following initial data for the enterprise for the reporting period are given:

• the total cost of production is 678,589 thousand rubles;
• balances of finished products at the beginning of the reporting period - 56 435 thousand rubles, at the end of the period - 32 567 thousand rubles.

First of all, carry-overs of finished products are calculated as the difference between the corresponding indicators at the beginning of the reporting period and at the end of the reporting period: 56 435 - 32 567 = 23 868 thousand rubles.

Then the calculation of the cost of products that were sold during the reporting period is made according to the above formula: 678589 + 23 868 = 702457 thousand rubles.

It can be concluded that business entities are interested in accurately determining the cost of their products, the calculation of which has its own characteristics.

Calculation of the cost of production is a complex calculation procedure. At the enterprise, this is the responsibility of accountants, who must calculate the expected income, taking into account all possible costs of the enterprise.

Cost of production - the main definitions

The cost price is the current expenses of the enterprise, expressed in monetary form, aimed at the production and sale of goods.

Cost price - economic category, which reflects the production and economic activities of the company and shows how much financial resources goes to the manufacture and sale of products. The profit of the enterprise directly depends on the cost price, and the lower it is, the higher the profitability.

Types and types of costs

The cost price is:

1. Full (average)- implies the totality of all costs, business costs for the manufacture of products and the purchase of equipment are also taken into account.
   It is customary to divide the costs of setting up a business into periods during which they must pay off. Gradually, in equal shares, they are added to the general production costs. Thus, the average cost per unit of production is formed.
2. Limiting- is in direct proportion to the quantity of goods produced and reflects the cost of each additional unit of production. Shows how effective the further expansion of production will be.

The type of cost price depends on what kind of business the owner wants to control:

What is the cost structure

The cost price consists of the following items:

• Raw materials required for production.
• Some businesses require calculation energy carriers (different kinds fuel).
• Equipment and machinery costs necessary for the functioning of the enterprise.
• Staff salaries as well as payment of all payments and taxes.
• General production costs(office rent, advertising, and so on).
• Social event costs.
• Costs associated with amortization fixed assets.
• Administrative expenses.
• Payment for the activities of third-party organizations.

Also, when calculating the cost, it is customary to take into account production costs.

Production volume and cost: is there a connection

The cost of production directly depends on the quantity of goods produced.

Let's say you need to purchase a package of tea worth 50 rubles.

It takes half an hour to get to the store.

Your expenses will be:

• Let's estimate an hour of your time at 60 rubles;
• Your travel expenses will be 15 rubles.

The ownership formula is as follows:

Cost = (price of goods + expenses) / (amount of purchased goods) = (60 + 50 + 15) / 1 = 125 rubles

If you decide to purchase 4 packs of tea, then the cost of the product will be (4 * 50 + 60 + 15) / 4 = 68.75 rubles

The more products you purchase, the lower the cost will be, which, in turn, reduces the sales value of the products.

Thus, due to the large volume of output, larger firms may not be afraid of competition or such strong firms.

Production cost formation methods

The most common way to determine the cost is the costing method, with the help of which it is possible to calculate the cost per unit of the sold product.

It is best calculated using the comparable controlled price method, which is set based on the cost of services provided by competing firms.

Classification of expenses

The classification of costs is based on the task set related to business management (calculate the cost and profit of products sold, and so on).

• By adding to the cost of the finished product, all costs are usually divided into two types:

1. Direct- those that, in an exact or single way, are added to the cost of goods manufactured by the company. Often these are the costs of the necessary raw materials and materials, the wages of workers.
2. Indirect- represent overhead costs and relate to the object of calculation by the distribution method according to the methodology established at the enterprise.

These include the following costs:

1. Commercial;
2. General business;
3. General production.

• Depending on the volume of production, costs are:

1. Permanent- costs that do not depend on the volume of goods produced, but they are indicated per unit of production and change with the level of business activity.
2. Variables- costs which are influenced by the volume of production or sales. The unit of production does not change the cost amount.

• By importance for a separate case costs are:

1. Relevant- costs depending on the decisions made.
2. Irrelevant- costs that have nothing to do with the decisions made.

Costing methods

There are several different ways calculating the cost of goods. They are used depending on the nature of the work, services or products produced.

• Completeness of adding costs to cost.

There are two types of production costs:

1. Full- all expenses of the enterprise are taken into account.
2. Truncated- refers to the unit cost of variable costs.

A fixed part of general production costs and other expenses is written off to reduce profits at the end of a specified period without allocation to the goods produced.

With this method of calculation, the cost is influenced by both variables and fixed costs... The price is calculated by adding the required ROI to the cost price.

• Actual and target costs are calculated based on costs incurred by the enterprise. The standard cost makes it possible to keep under control the costs of various resources and, in the event of a deviation from the norm, take all the necessary actions on time.

The actual cost per unit of manufactured goods is determined after all costs have been counted.

The method is distinguished by its low efficiency.

• Depending on the cost accounting object, the following methods are distinguished:

1. Transverse- used by enterprises of serial and in-line production, when in the manufacturing process the product goes through several stages of processing.
2. Process-by-process- is typical for the mining industry.

Formation of the cost at the enterprise

Determining the cost of manufactured products is the task of the accountant. This process is very important and complex. At the same time, it is customary to divide costs into direct and indirect.

There are expenses that are indicated in accounting as direct, and in tax as indirect.

All expenses for the production of products and their sale are attributed to the cost price. It is customary to standardize expenses related to taxation.

Cost grouping

To draw up a financial statement, it is necessary to group expenses by economic elements:

• Material costs;
• Social needs payments;
• Employee salaries;
• Other expenses (payments, contributions to insurance funds).

When calculating the cost estimate, the grouping of costs by costing items is used, due to which the cost of a unit of output is calculated.

• Production materials and services costs;
• Employee salaries;
• The costs of preparing production for operation;
• General production and general expenses;
• Production costs;
• Other expenses.

Cost: the formula for calculating the total cost

Cost is the sum of all production costs.

In order to get the full cost of a product or service, you need to add up all the costs associated with production and sale.

To do this, use the formula:

PS = PRS + RR

• Production cost of goods PRS calculated based on production costs (depreciation, wages, material costs, social benefits).
• Costs of selling PP goods(packaging, storage, transportation, advertising).

Unit cost calculation formula

Enterprises that produce only one type of product can calculate the cost per unit of manufactured goods using a simple calculation method.

The unit price of manufactured goods is determined by dividing the sum of all expenses for a specified period by the amount of products manufactured during this time.

Calculation of the cost of production of the formula excel

There are special Excel programs, with the help of which it is possible to calculate the cost of production. You enter the required data and receive Excel formulas.

Your task is to enter all the numbers correctly, the program will carry out all calculations automatically and according to all the rules. All indicators are calculated using formulas. Data processing does not take much time.

Positive aspects of the program:

• The program works in different modes (automatic and manual);
• Correct work with "Returnable waste";
• Suitable for small and medium businesses.
• Negative sides of the program:
• Limited amount of processed information;
• Only one resource type specification is supported.

The cost price shows how much it cost the enterprise to manufacture the products. It has a specific structure and is calculated using formulas.

In production, accountants are involved in calculating the cost, choosing the appropriate method for this.

One of the most popular concepts of commerce, economics and entrepreneurship is the formula for the cost of creating and selling products. The indicator is explained as the total number of funds spent by the company for the production and subsequent sale of a service or product, in strict dependence on the sector of the economy in which the company operates.

Calculation: Existing Waste Cost Types and Types

Today, the cost is divided into marginal and average (in other words, the total cost).

Full cost, means the volume of all production waste of the enterprise, including commercial, aimed exclusively at the production process.

The marginal cost indicator is the unit cost of the product created.

Key types of costs:

• Shop... It implies the total volume of all costs of the firm, incurred by all of its production structures that have a direct impact on the creation of the product.
• Production... It takes into account the company's expenses incurred by all involved structures of the company, as well as general and targeted spending.
• Full cost implies that in addition to the company's expenses for organizing everything production process the release of a product or service, money intended for the final sale of the released product is included in the waste line. In other words, the costs required to build logistics and deliver goods to the end consumer are added to the production cost of waste.

In addition to the above types, concepts such as the average industry, individual, actual, and full cost are often used.

Structure

The architecture of the cost of waste of the company is built on the basis of the following structural indicators:

• Wage. Depending on the deductible cost, wages can be taken into account for support personnel, the main class of workers, junior maintenance and intellectual personnel.
• Deductions for the depreciation of the main assets of the enterprise (renovation of buildings, improvement of the adjacent territory).
• Waste on the organization and conduct of social events.
• Material expenses of the company. The following types are credited: the purchase of raw materials, electricity, general production costs, the purchase of components and production equipment.
• Waste on the development and implementation of a marketing strategy.

In the calculation process, the following balance sheet items are taken into account:

1. Electricity and fuel used in the process of creating the manufactured product.
2. The approved salary of the main personnel of the company.
3. Key materials used in the production of a product (for example, components, semi-finished products, units).
4. General production costs aimed at delivering the product to consumers (sale), payment of employees involved in the repair of production facilities and fixed assets of the company (premises), intra-production waste.
5. Depreciation deductions in favor of the main production fund.
6. Social expenses of the company.

Also taken into account are the costs of paying for the services of counterparties, travel allowances and administrative expenses for the maintenance of the management apparatus. The calculation of the cost of spending on the creation of a product may be different depending on which sector of the economy the company operates in.

Full cost- these are the costs of production and sales of products.

The total cost is made up of the production cost and the selling expenses.

Selling expenses are associated with the sale of products. These include: the cost of packaging, packaging, loading, unloading, transportation, etc.

When planning the cost of production, three basic calculations are performed:

1. Calculation of the cost estimate;

2. Calculation of production cost estimates;

3. Calculation of reducing the cost of production.

Costing- these are costs in monetary form associated with the production and sale of a unit of production.

Such a unit in the confectionery industry is 1 ton of products.

The calculation is made for each product range in order to determine the profitability of the production of a particular product. A cost estimate is drawn up. The essence of this method is that all costs are divided into: direct and indirect.

Direct costs include costs that are calculated according to established standards, for example: costs of raw materials, materials, fuel, electricity, packaging, etc.

Indirect costs include those costs that are difficult to calculate according to the norms and they are calculated relative to the established base - these are general production costs, general business costs, and commercial costs.

The methodology for calculating indirect costs is as follows: general production costs, general business costs are calculated as a percentage of wages; Selling costs are calculated as a percentage of production costs.

In the calculation of cost items there are: fixed and variable.

Fixed costs do not depend on the amount of products produced. These include: general production and sales costs.

Variable costs depend on the amount of products produced. This includes all other costing items.

Estimated production costs- these are the costs associated with the release of gross output, taking into account the work in progress.

The cost estimate is drawn up according to aggregated economic indicators, regardless of the purpose of the costs and the place of their use. This allows you to determine the total need of the enterprise for raw materials, the total cost of wages, the total need for fuel, electricity, the total amount of depreciation and other costs.

In the calculation, wages are indicated in separate articles for production workers, for the administrative apparatus and non-administrative apparatus, and the production estimate is indicated in the general article "" Wages of the PPP "".

The production estimate includes the following cost elements:

1. Raw materials and basic materials;

2. Supporting materials;

3. Fuel from the side;

4. Electricity from outside;

5. Wages PPP;

6. Accruals on wages;

7. Depreciation deductions;

8. Other expenses;

There are two methods for calculating the reduction in production costs:

1. Calculation of cost reduction for comparable products;

2. Calculation of reducing the cost of incomparable products.

Comparableproduction- this is the kind of product that was produced last year and is scheduled for production next year.

Incomparable products- these are products that are being developed for the first time.

When producing comparable products, the percentage of cost reduction is planned according to the formula

where T is a commercial product, rubles;

С - cost price, rub.

At each enterprise it is necessary to reduce the cost of production, because profit increases, and conditions are created to reduce the price of goods, so it is necessary to know the sources and factors of cost reduction. The sources of reducing the cost of production include:

Saving raw materials and supplies;

Reduction of TZR;

Reduction of fuel and electricity;

Labor productivity growth;

Reduced indirect costs.

The main factors in reducing the cost of production are:

1. Implementation of scientific and technical progress;

2. Improvement of the form of organization of production;

3. Improvement of the main and auxiliary production;

4. Improvement of the organization of servicing workplaces;

5. Implementation of advanced management methods;

6. Effective use of advanced management techniques;

7. Development of quality products;

8. Improving the planning of the enterprise;

9. Expansion of the sales market

2 Calculation of the cost of 1 ton of products

2.1 Calculation of the quantity and cost of raw materials and materials per 1 ton.

The initial data are in table 1.

Table 1