because the manufacturing expenses are carried forward to the production cost first, then to the work in process or finished products, and then to the product sales cost, and finally to the profit and loss of this year.
the manufacturing expense account is an intermediate account, which is used to collect the production expenses that cannot be directly recorded in the product cost. At the end of the period, it should be distributed according to a certain method, and there should be no balance after distribution.
therefore, manufacturing expenses will not be related to the presentation of the balance sheet, let alone whether it is an inventory item when it is presented on the balance sheet.
Manufacturing expenses are cost subjects and belong to indirect expenses. Strictly speaking, the collection cost at the end of the month includes three items: labor cost, production cost and manufacturing cost. The inventory cost at the end of the month should be equal to the inventory cost at the end of the month-the difference between the purchase and sale of inventory goods+the purchase cost of inventory goods.
1. The consumption of machinery and materials in the production workshop shall be debited to this account and credited to "raw materials" and other subjects.
2. The salary of the production workshop management personnel and other employee salaries will be debited to this account and credited to the "Payable Employee Salaries" account.
3. Depreciation of fixed assets accrued in the production workshop shall be debited to the cost account and credited to the "accumulated depreciation" account.
4. The office expenses, utilities, etc. paid by the production workshop shall be debited to this account and credited to "bank deposit" and other subjects.
5. In case of seasonal shutdown losses, debit this account, and credit "raw materials", "wages payable to employees" and "bank deposits" and other subjects.
6. include the distribution of manufacturing expenses in the relevant cost accounting objects, debit the subjects of "production cost (basic production cost, auxiliary production cost)" and "labor cost" and credit this subject.
7. The difference between the actual amount of manufacturing expenses and the allocated amount of seasonal production enterprises throughout the year, except for those that are prepared for the next year's production, can be reserved for the next year's allocation, and the difference between the actual amount of the rest is greater than the allocated amount, which is debited to the subject of "production cost-basic production cost" and credited to this subject; If the actual amount is less than the allocated amount, make the opposite accounting entry.
note: the new standard stipulates that the maintenance cost of workshop fixed assets will no longer be capitalized and included in manufacturing expenses, but will be included in management expenses; Major repair expenses including fixed assets are no longer accrued expenses or long-term deferred expenses, and are all expensed and included in the current profit and loss.