Written Records Related To Production Expenses And Product Costs

Cost records can be classified into broad sense and narrow sense. In a narrow sense, cost records refer to various records that can be used for cost accounting in the daily production process of an enterprise, including various self-made original vouchers and various business records, such as product output records, picking records, production hours records, and power and energy consumption records. These records are the basis for calculating the cost of materials, labor and fees, and calculating the total cost and unit cost of various products.

Cost records are the basis for product cost calculation. Establishing and improving the cost recording system and ensuring the integrity and accuracy of the information provided are of great significance for strengthening business management, tapping potential, constantly reducing product costs and improving the economic benefits of enterprises.

In addition to the above contents, the generalized cost record includes all cost account records and cost statement figures from time to time.

Product output records usually include work orders Operation progress sheet , work shift yield report, yield notice and yield details, which mainly include product The name and number of the operation or order, the name and number of the machinery and equipment used, the quantity and quality of the finished products, that is, the quantity of qualified products and waste products. In the form of piecework wage, it should also include the unit price of products and the piecework wage of finished qualified products. The information provided by these records can be used as the output basis for cost calculation.

Picking records include Quota Picking List, Picking List, Picking Register, etc. They mainly record the quantity to be issued, quantity actually issued, unit price and amount actually issued of raw materials as the basis for calculating material cost.

Production hour records include attendance sheet, work notice, etc. The attendance sheet reflects the attendance and absence of employees, and the work notice reflects the actual working hours consumed and completed for production of work and products Fixed working hours In the form of hourly wage, the actual number of working hours is the basis for the distribution of production workers' wages, and sometimes provides information for the distribution of manufacturing expenses.

Power and energy consumption records are generally made through instruments and meters. Each workshop and department shall be equipped with various instruments and meters separately to reflect the power and energy consumption of each workshop and department. The distribution table of power and energy costs shall be prepared accordingly as one of the basis for cost calculation.

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The combined equity method records the merged net assets at book value, and goodwill is not recognized in the account book, which does not mean that the amount of the original book of the merged enterprise that is inaccurate cannot be adjusted. Items such as deferred expenses, if they have no value in the implementation of the merger, should still be written off.

Comparison between pooling of interests method and purchase method If different treatment methods are adopted for the same consolidated business, there must be differences in the financial status and operating results reflected. In fact, the combination of equity method and the purchase method have a significant impact on the accounting statements of the year of consolidation and subsequent years. This is reflected in the following aspects: (1) Under the equity pooling method, the profits of the merged enterprise include the profits realized by the merged enterprise during the whole year of the merger, regardless of the date of the actual merger; Under the purchase method, the profits of the merged enterprise only include the profits realized by the merged enterprise after the purchase date, which makes the profits under the equity combination method in the year of merger greater than the profits under the purchase method. In the case of loss of the merged enterprise, the result is just the opposite.

(2) Under the equity combination method, assets are valued at their book values. During the period of rising prices, their book values are generally lower than their fair values, so the assets have not appreciated. The consolidated enterprises can increase their profits in the consolidated year by selling these assets. If they continue to use these assets, The lower depreciation expense and amortization expense can be matched with the realized profit, which makes the profit under the combination of equity method larger than that under the purchase method.

(3) The direct costs of the merger are the costs of the current period of the merger under the combination of equity method, and the amount of the cost of net assets or goodwill of the merged enterprise is increased under the purchase method, resulting in the difference in the current profits under the two methods, but this difference has a small impact on the amount of the merger price difference and its amortization.

(4) The acquisition method records the acquired assets and liabilities at fair value, and recognizes goodwill. Due to the impact of inflation, the fair value of assets after appraisal is higher than the book value, so the asset value under the purchase method is greater than the asset value under the combination of equity method. However, in a few years after the merger, most of these assets will be converted into costs or expenses, which leads to more costs under the purchase method than under the combination of equity method, The difference is the difference that the fair value is greater than the book value and the amortization of goodwill, so the profit under the purchase method is lower than the profit under the combination of equity method after the merger.

The above differences cause differences in the information in the accounting statements, so investors should not only pay attention to the information reflected in the accounting statements, but also pay attention to the accounting methods adopted by the company to deal with consolidated business.