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This article discusses standard entries that reflect the consumption of material, production, labor and other resources for production and general economic purposes. In addition, posting diagrams are provided that reflect the results of cost calculation using the full cost method - Absorption Costing.
- Reflection of expenses for the needs of main and auxiliary production
- Reflection of general production (general business) expenses
- Reflection of the cost of products, services provided, work performed in auxiliary production
- Reflection of the cost of manufactured products, services provided, work performed
Reflection of expenses for the needs of main and auxiliary production
Below are typical entries reflecting expenses attributable to the costs of main production. Postings reflecting the expenses of auxiliary production are generated in the same way. In this case, in the postings, account 23 “Auxiliary production” is indicated as a debit account.
| Account Dt | Kt account | Wiring Description | Transaction amount | A document base |
| 20 | 60.01 | Works (services) of a production nature performed by third parties are reflected | Cost of work performed | Certificate of completed workInvoice (received) |
| 20 | 10 | Reflects the consumption of inventories (raw materials, purchased products, fuel, etc.) for the needs of the main production | Cost of material resources | Requirement invoice (TMF No. M-11) Limit card (TMF No. M-8) |
| 20 | 70 | Wages accrued to employees of main production | Salary amount | Accounting certificate-calculation |
| 20 | 69 | Insurance premiums have been calculated for employees of primary production | Amount of insurance premiums | Accounting certificate-calculation |
| 20 | 02 | Accrued depreciation of fixed assets involved in the main production | Amount of depreciation charges | Accounting certificate-calculation |
| 20 | 01 | The write-off of fixed assets worth less than 20 thousand rubles is reflected. put into operation for the needs of the main production | Cost of fixed assets | OS-1 Certificate of acceptance and delivery of fixed assets (except for buildings and structures) |
| 20 | 97 | The share of deferred expenses related to the reporting period is reflected | Amount of deferred expenses | Accounting certificate-calculation |
| 20 | 94 | Shortages (losses from spoilage) of inventories were written off within the approved norms of natural loss | Shortfall amount | Inventory list according to the form INV-3Accounting certificate-calculation |
| 20 | 71 | Travel expenses of employees of the main production are reflected | Amount of travel expenses | Advance report |
Typical entries for accounting for production costs
We have collected the main entries in cost accounting in a table. Remember that there are no account balances at the end of the month. 26 and 25, the balance on other accounts means the amount of work in progress (work in progress). At the same time, according to the account. 21 reflects the balance of semi-finished products that were produced in-house; and according to the account 28 – the amount of company losses from defects.
| Contents of the business operation | Account debit | Account credit |
| Depreciation charges for fixed assets used in the main production are reflected | 20 | 02 |
| Depreciation charges for intangible assets used in the main production are reflected | 20 | 05 |
| The materials and raw materials used in the manufacture of products are taken into account | 20 | 10 |
| The salaries of the main workers are taken into account | 20 | 70 |
| Reflects the accrual of compulsory social insurance contributions from the earnings of key workers | 20 | 69 |
| The write-off of used own semi-finished products is reflected | 20 | 21 |
| General production costs written off as expenses | 20 | 25 |
| General business expenses written off as expenses | 20 | 26 |
| Non-refundable VAT included in basic expenses | 20 | 19 |
| Costs of auxiliary production written off as expenses | 20 | 23 |
| Losses from manufacturing defects are taken into account in expenses | 20 | 28 |
| Reflects the write-off for production or return for revision of previously produced products | 20 | 40 (43) |
| The write-off of goods for the manufacture of products is reflected | 20 | 41 |
| Work performed by third-party suppliers is taken into account in costs | 20 | 60 |
| Accountable amounts included in costs | 20 | 71 |
| Recorded write-off of production-type compensation amounts to personnel | 20 | 73 |
| Surplus work in progress is reflected in income | 20 | 91.1 |
| Identified shortcomings (losses) in the production process were taken into account, without identifying the perpetrators | 20 | 94 |
| Part of future expenses is written off as expenses | 20 | 97 |
| The write-off of the actual cost of manufactured products is reflected | 40 | 20 |
| The output of finished products is reflected | 43 | 20 |
| Manufactured products (services provided, work performed) were transferred to third parties | 45 | 20 |
| Recorded write-off of cost of services provided | 90 | 20 |
| Losses that are not subject to compensation as a result of various emergency circumstances are included in the organization's losses. | 99 | 20 |
Reflection of general production (general business) expenses
Below are typical entries that reflect expenses attributable to general production costs. Postings reflecting general business expenses are generated in the same way. In this case, the postings indicate account 26 “General business expenses” as a debit account.
| Account Dt | Kt account | Wiring Description | Transaction amount | A document base |
| 25 | 60.01 | Works (services) of a general production (general economic) nature performed by third-party organizations are reflected | Cost of work performed | Certificate of completed workInvoice (received) |
| 25 | 10 | Reflects the consumption of material resources (raw materials, purchased products, fuel, etc.) for general production (general economic) needs | Cost of material resources | Requirement invoice (TMF No. M-11) Limit card (TMF No. M-8) |
| 25 | 70 | Reflects the wages of employees attributed to general production (general business) costs | Salary amount | Accounting certificate-calculation |
| 25 | 69 | Insurance premiums attributed to general production (general business) costs are reflected | Amount of insurance premiums | Accounting certificate-calculation |
| 25 | 02 | Accrued depreciation of fixed assets for non-production (general economic) purposes | Amount of depreciation charges | Accounting certificate-calculation |
| 25 | 01 | The write-off of fixed assets worth less than 20 thousand rubles is reflected. put into operation | Cost of fixed assets | OS-1 Certificate of acceptance and delivery of fixed assets (except for buildings and structures) |
| 25 | 97 | The share of deferred expenses related to the reporting period is reflected | Amount of deferred expenses | Accounting certificate-calculation |
| 25 | 71 | Travel expenses reflected | Amount of travel expenses | Advance report |
Reflection of the cost of products, services provided, work performed in auxiliary production
The typical entries below reflect the distribution of the share of general production and general business costs for the needs of auxiliary production. In addition, entries are provided reflecting the write-off of the costs of auxiliary production for the cost of products (work, services) produced through these production and for the needs of the main production
| Account Dt | Kt account | Wiring Description | Transaction amount | A document base |
| 23 | 25 | Distribution of general production costs to the costs of auxiliary production in proportion to the selected distribution base | Amount of overhead costs | Accounting certificate-calculation |
| 23 | 26 | Distribution of general business expenses into costs of auxiliary production | Amount of general business expenses | Accounting certificate-calculation |
| 40 | 23 | We reflect the cost of production of auxiliary production | Cost of manufactured products | Accounting certificate-calculation |
| 20 | 23 | Distribution of auxiliary production costs to the main production costs in proportion to the selected distribution base | Amount of expenses of auxiliary productions | Accounting certificate-calculation |
| 90.2 | 23 | We reflect the cost of work and auxiliary production services | Cost of work, services | Accounting certificate-calculation |
| 90.2 | 26 | Write-off of general business expenses to the cost of sales of the reporting period (in the case when general business expenses are not distributed among production costs) | Amount of general business expenses | Accounting certificate-calculation |
Accounting of costs of main production
Typical entries used by an accountant when recording production costs will be as follows:
| Operations | D/t | K/t |
| The following are written off at the OP (main production): | ||
| — Inventory materials, goods | 20 | 10,41 |
| - wages accrued to employees of main production | 20 | 70 |
| — deductions of insurance premiums from the salaries of employees of the OP | 20 | 69 |
| — wear and tear of fixed assets and intangible assets involved in the operational process | 20 | 02,05 |
| - expenses of auxiliary farms | 20 | 23 |
| — general production and general economic expenses in the part related to the OP | 20 | 25,26 |
| - losses from an admitted marriage | 20 | 28 |
| — expenses for contractors’ services | 20 | 60 |
| — approved expenses for advance reports | 20 | 71 |
| Closing the account 20 | ||
| Receipt of finished products | 40,43 | 20 |
| Cost of goods sold written off | 90/2 | 20 |
Reflection of the cost of manufactured products, services provided, work performed
The above diagram of typical transactions is used to reflect the cost of manufactured products (work performed, services rendered). General and general production expenses are distributed to the costs of the main production (included in the cost of sales - for general expenses) in full. Accounts 25 and 26 do not have a balance at the end of the reporting period.
On account 20 “Main production” at the end of the reporting period there may remain a debit balance in the volume of work in progress. Additionally, you can familiarize yourself with standard postings reflecting the release of finished products.
| Account Dt | Kt account | Wiring Description | Transaction amount | A document base |
| 20 | 23 | Distribution of expenses of auxiliary productions in proportion to the selected distribution base | Amount of expenses of auxiliary productions | Accounting certificate-calculation |
| 20 | 25 | Distribution of overhead costs in proportion to the selected distribution base | Amount of overhead costs | Accounting certificate-calculation |
| 20 | 26 | Distribution of general business expenses (in the case when general business expenses are not included in the cost of sales of the reporting period) | Amount of general business expenses | Accounting certificate-calculation |
| 40 | 20 | We reflect the cost of manufactured products. The cost of resources in work in progress is determined by inventory | Cost of manufactured products | Accounting certificate-calculation |
| 90.2 | 20 | We reflect the cost of work performed and services provided. The cost of resources in work in progress is determined by inventory | Cost of work, services | Accounting certificate-calculation |
| 90.2 | 26 | Write-off of general business expenses to the cost of sales of the reporting period (in the case when general business expenses are not distributed among the costs of the main production) | Amount of general business expenses | Accounting certificate-calculation |
Analytical accounting of costs of main production
In the analytical block, information on each specific object or manufactured product is detailed, broken down by type, in a separate production report (or another option most convenient for the company, for example, in a statement, or by assigning special codes and accumulating expenses under this code throughout the entire reporting period) by items and cost elements.
In automated accounting programs, production reports can be generated for any period (day, decade, month, etc.). Based on the volume of costs “collected” for the object, the enterprise calculates the cost of the product. At the end of the month, account 20 “Main production” is closed with expenses distributed by object or type. All of them must be confirmed by primary documents.
List of accounts involved in accounting entries:
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