Material expenses (costs): what to include in their composition? Material costs on the balance sheet How to calculate material costs for the year formula.

The material costs of an organization include those costs that were aimed at purchasing materials, as well as raw materials in order to create the final finished product. The specific features characteristic of the accounting process in commercial companies suggest that the management of each such organization independently determines the list of material expenses with its recording in its own accounting scheme.

At the same time, it is necessary to note the fact that the procedure for accounting for all material costs of the organization was unified in accounts 20-29 of the prescribed plan by representatives of the leadership of the Ministry of Finance of the Russian Federation. For this reason, they were developed certain methods, allowing you to calculate the amount of material costs within the balance sheet and derive a coefficient based on them, which highly accurately assesses the performance of the company.

What is included

To the number the most significant costs of the enterprise, of course, include material ones. Often this type of view takes about 60-90% from all company expenses. For this reason, they should be given special attention. Before moving on to considering the accounting of material costs, it is necessary to find out what exactly they include.

Material types of expenses of an organization include:

raw materials and various materials purchased externally;
purchasing semi-finished products and some components from suppliers;
various types of services and work that are performed by third-party companies;
all types of fuel that are purchased from other organizations;
all types of energy resources that are used by the company in the process of its operation;
payment for intermediary services, as well as various commission fees.

Each of the presented elements is included in general cost scheme taking into account the need to deduct the price of waste to be sold. It is customary to count as waste the residual amount of primary raw materials, materials, components or thermal media that arose as a result of the production process and have completely or partially lost their original consumer properties.

Depending on the method of their further use, they can be sold at a reduced price or at the full primary cost. At the same time, it is worth noting that the returnable type of waste cannot include those material resources that, within the framework of a certain technological process, are transferred to other production departments and can be used as full-fledged materials to create a finished product.

The company's material costs consist of the totality of all purchased materials, which are used to ensure the operation of the production process. Such materials even include those used for packaging, as well as for other production needs related to the maintenance, operation, testing and inspection of existing equipment, as well as buildings.

This category also includes various kinds of devices, tools, inventory, as well as laboratory installations and other labor tools that cannot be regarded as part of the enterprise’s fixed assets.

Of great importance in the amount of the cost of material resources of the company is the cost of their purchase excluding VAT. In addition, one cannot neglect the influence of the size of the markup, the cost of brokerage services, commodity exchanges, customs duties, payment for storage of products, the cost of transportation and delivery, as well as commissions of organizations involved in supply and foreign economic activity.

In order to determine the optimal price of the enterprise's final product, a thorough analysis of the prices of materials offered by suppliers is carried out. In addition, this method allows you to increase the overall indicators of the organization’s economic stability in modern market conditions.

We also must not forget that in order to improve the efficiency of using material resources It is recommended to actively use technology, which help reduce waste and reduce energy consumption of the production process.

An important aspect that influences the final cost of production is the usefulness of the use of industrial waste, as well as the validity of their assessment.

The process of rationing the use of material costs acts as one of the mandatory conditions for the rational use of the company’s existing resources. The consumption rate represents the maximum permissible volume of raw materials, materials and fuel resources used that are consumed to create one final product of a certain quality, as well as for the full implementation of technological production processes.

Today the existing regulatory system is set of standards, having a scientific, labor, economic and financial justification, which are used in the process of developing and creating both long-term and current plans for a commercial structure.

In total there is only four main methods, allowing you to control the amount of materials and raw materials used:

documentation;
batch cutting;
batch accounting;
inventory.

Documentation methodology applied by all enterprises. This method is based on the procedure for issuing separate documents for each case of deviation of the quantitative consumption of raw materials from previously determined standard volumes.

In industry, which affects the field of mechanical engineering, a technique called batch cutting. The idea is to create special cutting sheets for each individual batch of incoming materials.

In such sheets it is necessary to indicate the total volume of materials and raw materials, semi-finished products, as well as waste that should have been received and the actual volume received. At the next stage, the final results are compared with standard indicators. After this, a conclusion is made about the existing savings or overspending. Ultimately, the accounting card contains information about the reasons for the identified deviations, as well as the persons who are responsible for the resulting cutting.

Process batch accounting involves the formation of raw materials and material batches that are homogeneous in terms of technological parameters. Each batch is stored separately. In addition, each of them is assigned a unique individual number designation.

In the future, all these batch numbers must be indicated in all primary material accounting documentation. This method makes it possible to assign each batch of materials to a specific type of product.

Usage inventory methodology assumes that at the end of each month the process of inventorying existing unspent raw materials and material reserves is initiated. The inventory methodology can be characterized the following formula:

P = He + P – Ok, where

R– price of used inventories, He– the price of the primary material balance, P– amount of materials received per month, OK– the price of the final material balance.

Each enterprise in the process of its work uses a huge amount of different kinds of materials and raw materials. One of the main tasks of the management of such organizations is to monitor compliance with established production standards, as well as the dynamics of real material consumption.

This is due to the fact that this type of cost has greatest impact on the size of the final profit gained. At the same time, processes that address material savings act as critical factors that help improve the overall efficiency of the production process.

Results

The main task of every enterprise is to making as much profit as possible. This can only be achieved through competent management of the internal processes of such an enterprise. One of the most important factors influencing the overall economic indicators of the success of a commercial structure is correct management of material costs.

The webinar on reducing material costs can be viewed below.

The main goals of cost planning are to identify and use existing reserves for reducing production costs and increasing on-farm savings. The plan (estimate) for the cost of production is drawn up according to rules that are uniform for all enterprises. The rules contain a list of costs included in the cost of production and define methods for calculating costs.

The product cost plan includes the following sections:

1. Cost estimate for production (compiled by economic elements).

2. Calculation of the cost of all commercial and sold products.

3. Comparison of planned cost estimates for individual products.

4. Calculation of the reduction in the cost of commercial products based on technical and economic factors.

Common to all industries is the procedure for including in the cost of production only those costs that are directly or indirectly related to the production of products. It is impossible to include in the planned cost of production expenses that are not related to its production, for example, expenses associated with servicing the household needs of the enterprise (maintenance of housing and communal services, expenses of other non-industrial enterprises, etc.), major repairs and construction and installation work , as well as cultural and household expenses.

Some other expenses are not included in the planned cost, for example, non-productive expenses and losses caused by deviations from the established technological process, manufacturing defects (losses from defects are planned only in foundry, thermal, vacuum, glass, optical, ceramic and canning industries, as well as especially complex production of the latest technology in minimum sizes according to the standards established by a higher organization).

The enterprise plan defines a task to reduce the cost of comparable products. It is expressed as a percentage reduction in production costs compared to the previous year. The amount of planned savings resulting from a reduction in the cost of comparable products may also be indicated.

The cost of production is characterized by indicators expressing:

a) the total amount of costs for all products produced and work performed by the enterprise for the planning (reporting) period;

b) costs per unit of work performed, costs per 1 rub. commercial products, costs per 1 rub. regulatory clean products.

Depending on the volume of included costs, there are cost price:

1) workshop (includes direct costs and general production costs; characterizes the costs of the workshop for the manufacture of products);

2) production (consists of shop cost and general business expenses; indicates the costs of the enterprise associated with the production of products);

3) total (production cost increased by the amount of commercial and sales expenses; characterizes the total costs of the enterprise associated with both production and sales of products).

The level of costs is influenced by a number of factors, including changes in consumption rates and prices for materials, growth in labor productivity, changes in production volume, etc.

The economic (opportunity) costs of an intended resource used in production are equal to its cost (value) in the most optimal way of using it to produce goods.

Calculation at the enterprise, regardless of its type of activity, size and form of ownership, organized according to certain principles:

1) scientifically based classification of production costs;

2) establishment of cost accounting objects, costing objects and costing units;

3) choosing a method for distributing indirect costs and consolidating this method in the accounting policy of the enterprise for the financial year;

4) differentiation of costs by period at the time of their commission without linking with cash flows;

5) separate accounting for current production costs and capital investments (Federal Law No. 129-FZ dated November 21, 1996 (as amended on November 28, 2011) “On Accounting”);

6) choice of cost accounting and calculation method.

The choice by an enterprise of the method of accounting for production costs is carried out independently and depends on a number of factors: industry, size, technology used, product range.

The classification of methods for accounting for production costs and calculating production costs involves:

1) completeness of cost accounting (full and partial cost, cost based on variable costs);

2) objectivity of accounting, cost control (accounting for actual and standard costs, the “standard-cost” system);

3) object of cost accounting (process-based, incremental and order-based methods).

The cost per unit of production is determined by dividing the total costs for the reporting month by the number of products produced during this period and is calculated using the formula:

S = W / X,

where C is the cost per unit of production, rub.;

Z - total costs for the reporting period, rub.;

X— the amount of products produced during the reporting period in physical terms (pieces, tons, m, etc.).

Calculation of unit cost of production is carried out in three stages:

1) the production cost of all manufactured products is calculated, then the production cost per unit of production is determined by dividing all production costs by the number of manufactured products;

2) the amount of administrative and commercial expenses is divided by the number of products sold during the reporting month;

3) the indicators calculated in the first two stages are summed up.

However, in enterprises that produce one type of product (in the absence of semi-finished products of their own production) and have a certain amount of finished products not sold to the buyer, a simple two-stage calculation method is used.

Cost of production method simple two-step calculation calculated using the following formula:

C = (Z pr / X pr) + (Z control / X cont),

where C is the total cost of production, rub.;

Zpr - total production costs of the reporting period, rub.;

X pr - number of units of products produced in the reporting period, pcs.;

X prod - number of units of products sold in the reporting period, pcs.

If the production process consists of several stages (reprocessing stages), at the output of which there is an intermediate warehouse for semi-finished products, and the stocks of semi-finished products change from processing stage to reprocessing stage, then the method is used multi-step simple costing. The cost per unit of production is calculated using the following formula:

C = (Z pr 1 / X 1) + (Z pr 2 / X 2) + … + (Z control / X cont),

where C is the total cost of a unit of production, rub.;

Zpr 1, Zpr 2 - total production costs of each stage, rub.;

Zmr - administrative and commercial expenses of the reporting period, rub.;

X I, X 2 - the number of semi-finished products manufactured in the reporting period by each stage, pcs.;

X prod - number of units sold in the reporting period, pcs.

The object of calculation becomes the product of each completed processing stage, including those processing stages in which several products are simultaneously produced. As a result of the sequential passage of the source material through all processing stages, finished products are obtained; at the exit from the last processing stage there is not a semi-finished product, but a finished product. In industry, two options for accounting for production costs are used: semi-finished and unfinished.

The costs of manufacturing semi-finished products, parts and assemblies are taken into account by workshop, broken down by expense items. Added costs are reflected for each workshop (processing stage) separately, and the cost of raw materials is included in the cost of production only for the first processing stage. With this option for accounting for production costs, the cost per unit of finished product is formed by summing up the costs of workshops (reprocessing areas) taking into account the share of their participation in the manufacturing process.

The non-semi-finished accounting method is simpler and less labor-intensive than the semi-finished one. Its main advantage is the absence of conditional calculations that decipher the costs of previous workshops and redistributions, which increases the accuracy of calculation.

Note! The advantage of the semi-finished accounting method is the availability of accounting information on the cost of semi-finished products at the exit from each processing stage (it is necessary when selling them). At the same time, simultaneous inventory of work in progress throughout the enterprise is not required.

Enterprise costs associated with the production and sale of products are conventionally divided into two large groups: direct and indirect.

To direct costs include direct material costs and direct labor costs. They are called direct because they can be directly attributed to the cost carrier. Attributing indirect costs to a product requires special techniques.

The first element of direct costs is the actual consumption of materials for the reporting period, which is determined by the formula:

R f = O np + P - V - O kp,

where Rf is the actual consumption of materials for the reporting period, rub.;

О np - balance of materials at the beginning of the reporting period, rub.;

P - documented receipt of materials during the reporting period, rub.;

B - internal movement of material during the reporting period (return to the warehouse, transfer to other workshops, etc.);

O KP - balance of materials at the end of the reporting period, determined according to inventory data, rub.

The actual consumption of materials for each product is determined by distributing them in proportion to the standard consumption.

The second element of direct costs is the wages of the main production workers with the corresponding charges on it.

To calculate the wages of employees on a time-based wage system, time sheet data is used. In conditions of piecework wages, various systems for recording the output of piecework workers can be used. For example, a system of operational accounting of output provides for the acceptance, calculation and recording of information about the output of a worker (team) in primary documents by the controller and foreman after each operation.

In the conditions of small-scale and individual production, the main primary document for accounting production is the work order for piecework. It reflects the task, its completion, level of work, time worked, price and amount of earnings.

In mass production, the primary documents are route sheets or maps. They record the launch into production and processing of a batch of blanks in accordance with the established technological process. When a batch of parts is transferred from workshop to workshop, a route sheet is also transferred along with them.

Worker output is defined as the balance of parts or blanks at the beginning of the shift, increased by the number of parts transferred to the workplace during the shift, minus the balance of unprocessed or unassembled parts at the end of the shift. The output of each worker calculated in this way is documented in reports or output accounting sheets. After multiplying the piece rate by the actual output achieved, the amount of the accrued wages of the piece worker is obtained.

In practice, the following bases are used to distribute production overhead costs among cost carriers:

1) working time of production workers (man-hours);

2) wages of production workers;

3) equipment operating time (machine hours);

4) direct costs;

5) cost of basic materials;

6) volume of products produced;

7) distribution in proportion to estimated (normative) rates.

The most important principle for choosing a method for distributing overhead costs is to bring the distribution results as close as possible to the actual costs for a given type of product.

One of the alternatives to the traditional domestic approach to calculation is the approach when it is planned and taken into account using cost carriers. incomplete, limited cost. This cost can include only direct costs and be calculated on the basis of production costs only, that is, costs directly related to the production of products (works, services), even if they are indirect. In each case, the completeness of inclusion of costs in the cost price is different. However, what is common to this approach is that some types of costs related to the production and sale of products are not included in the calculation, but are reimbursed with a total amount from revenue.

One of the modifications of this system is the “direct-cost” system. Its essence is that the cost is taken into account and planned only in terms of variable costs, that is, only variable costs are distributed among cost carriers. The remaining part of the costs (fixed expenses) is collected in a separate account; they are not included in the calculation and are periodically written off to financial results, that is, they are taken into account when calculating profits and losses for the reporting period. Variable costs are also used to estimate inventories—remains of finished products in warehouses and work in progress.

Example 1

The initial data for calculating the cost are presented in the table.

Costing example
No.	Cost item	Amount, rub.
	Basic materials, including purchased products	direct costs
	Transportation and procurement costs
	Fuel, energy (technological)
	Basic salary	standard hour cost
	Additional salary
	Contributions to funds	34.2% of (item 4 + item 5)
	Expenses for preparation and development of production	30% of (item 4 + item 5)
	Equipment maintenance costs and tool wear	40% of (item 4 + item 5)
	Shop expenses	30% of (item 4 + item 5)
	Factory overhead	10% of (item 4 + item 5)
	Production cost	clause 1 + clause 2 + clause 3 + clause 4 + clause 5 + clause 6 + clause 7 + clause 8 + clause 9 + clause 10
	Non-production expenses	15% from clause 11
	Total production cost
	Planned savings	10% from clause 13
	Wholesale price	clause 13 + clause 14 + VAT 18%

The standard method of cost accounting and cost calculation is characterized by the fact that the enterprise draws up a preliminary standard cost estimate for each type of product, that is, a cost estimate calculated according to the norms for consumption of materials and labor costs in effect at the beginning of the month.

Standard costing is used to determine the actual cost of production, assess defects in production and the size of work in progress. All changes to current standards are reflected within a month in standard calculations. Standards may change, for example, decrease, as production develops and the use of material and labor resources improves.

Accounting is organized in such a way that all current costs are divided into consumption according to norms and deviations from norms.

The system of normative (standard) costs serves to evaluate the performance of individual employees and the organization as a whole, prepare budgets and forecasts, and helps make decisions on setting real prices.

Indirect cost distribution scheme as follows:

1. Selecting an object to which indirect costs are distributed (product, group of products, order).

2. The choice of the distribution base for this type of indirect costs is the type of indicator used to distribute costs (labor costs, basic materials, occupied production space, etc.).

3. Calculation of the distribution coefficient (rate) by dividing the amount of distributed indirect costs by the amount of the selected distribution base.

4. Determining the amount of indirect costs for each object by multiplying the calculated value (rate) of cost distribution by the value of the distribution base corresponding to the given object.

Example 2

General production costs of the enterprise, subject to distribution across several orders that were completed in a month, are 81,720 rubles.

The direct costs taken into account when executing the order were:

1) material costs - 30,000 rubles;

2) expenses for remuneration of main production workers - 40,000 rubles.

The distribution base is the cost of remuneration of the main production workers (including salary taxes). In general, for the organization for the same period the base amounted to 54,480 rubles. (40,000 × 36.2%).

The distribution rate (C) will be determined by the following formula:

S = GPZ / Z,

where OPC is general production costs;

W - wages of main production workers.

In this case, C = 81,720 / 54,480 = 1.5 (or 150%).

Based on the distribution rate, overhead costs are charged to specific orders (items, products). GPO = Z × S = 40,000 × 1.5 = 60,000 rubles.

After this, the amount of direct and general production costs is determined (as the production cost of order fulfillment): 30,000 + 40,000 + 60,000 = 130,000 rubles.

But such a distribution scheme is not always linked to the process of organizing production, and in this case more complex calculation methods are used. For example, general production costs are first divided by places of origin (workshops, departments, etc.), and then only by orders.

However, when choosing a distribution base, it is necessary to observe the principle of proportionality in order to maintain a fair and rational distribution of costs across orders (products, etc.), namely: the value of the selected distribution base and the amount of distributed costs must be in direct proportion to each other.

For example, the larger the distribution base, the greater the distribution of costs.

The difficulty is that finding such a base for heterogeneous indirect costs is almost impossible in practice. In order to increase the validity of distribution for different types of overhead costs, different distribution bases can be used, for example, the following:

1) labor costs of the AUP are distributed in proportion to the salary of the AUP;

2) the costs of repairs and maintenance of buildings for general production purposes are distributed in proportion to the area of the production unit;

3) the costs of operating and maintaining equipment are distributed in proportion to the operating time and cost of this equipment;

4) the costs of storing materials are distributed in proportion to the cost of materials;

5) the enterprise’s commercial expenses are distributed in proportion to sales revenue for a certain period of time.

Example 3

Let's use the data from the previous example, but add overhead costs:

1) labor costs for the AUP - 50,000 rubles;

2) rent for production premises and payment for utilities - 105,000 rubles;

3) commercial expenses of the enterprise - 35,000 rubles.

The area of production premises is 60% of all production areas.

The share of revenue from the order is 30% of the total revenue of the entire enterprise for the period under review. The share of labor costs for this order is 35% of the total cost of wages for production workers of the enterprise.

The cost of the order under the specified conditions will be the following distributed amounts:

1) labor costs for the AUP - 17,500 rubles. (50,000 × 35%);

2) expenses for rent and utilities - 63,000 rubles. (105,000 × 60%);

3) commercial expenses - 10,500 rubles. (35,000 × 30%).

Let's determine the amount of direct and general production costs (production cost of order fulfillment): 30,000 + 40,000 + 17,500 + 63,000 + 10,500 = 161,000 rubles.

In this case, the result obtained is more accurate than in example 2, but the process of determining it is more labor-intensive.

Process calculation method It is used mainly in the production of homogeneous products or where, over a long period of time, products undergo processing through several production stages, which are called processing stages (in the service sector (at catering establishments) and in enterprises using a self-service system). The process-by-process method of calculation allows all production costs to be grouped by department (by production process).

Example 4

Furniture assembly consists of two stages (processing stages), each of which involves processing. Labor costs for production personnel (З) are: З 1 = 20,000 rubles; Z 2 = 31,000 rub.

Materials are included in production accordingly: M 1 = 80,000 rubles; M 2 = 62,000 rub.

At the end of the first stage, 200 pieces are formed. blanks, of which only 150 pieces go into further processing. (the remaining 50 pieces are used in the next reporting period). At the end of the second stage, production is 140 units. furniture.

Let's determine the cost of furniture after each stage of the production process and the cost of 1 piece. furniture after the second stage of processing.

After the first stage, costs for 200 pcs. procurement will amount to 100,000 rubles. (80,000 + 20,000).

Cost of 1 piece. blanks - 500 rub. (100,000 / 200).

Cost 150 pcs. furniture that goes into further processing (Z I) will amount to 75,000 rubles. (500 × 150).

Let's determine the costs for 150 pcs. furniture after the second stage: M 2 + Z 2 + Z I = 62,000 + 31,000 + 75,000 = 168,000 rubles.

Cost of 1 piece. furniture will be 1200 rubles. (168,000 / 140).

The example reflects only production costs without including AUP costs and commercial expenses.

When two or more products are produced simultaneously during a technological process, the elimination method or the distribution method is used for calculation. It is problematic to distribute the costs of the first stage of processing among products at subsequent stages.

When calculating by elimination one of the products is selected as the main one, the rest are recognized as by-products. Then only the main product is calculated, and the cost of by-products is subtracted from the total costs of complex production. As a result, the resulting difference is divided by the amount of the main product obtained.

The cost of by-products is determined by the following indicators:

1) the market value of by-products obtained at the point of separation;

2) the possible cost of selling by-products at the point of separation;

3) standard cost of by-products;

4) indicators of by-products in physical terms (product units), etc.

Example 5

Production consists of two stages (processing stages). After the first stage, the production process is divided into two products, each of which undergoes independent processing. At all stages, processing costs are incurred, consisting of labor costs for production personnel: Z 1 = 20,000 rubles; Z 2-1 = 15,000 rubles; Z 2-2 = 25,000 rub.

Basic materials are included in production at the first stage, additional materials are used at the second production stage for each product: M 1 = 80,000 rubles; M 2-1 = 30,000 rub.; M 2-2 = 45,000 rub.

After the first stage, 200 pieces are formed. blanks option 1 and 30 pcs. blanks of option 2. All blanks received after the first stage are used for further processing. According to expert assessment, the market price of furniture of option 1 at the dividing point is 600 rubles / piece, furniture of option 2 - 40 rubles / piece.

After the second stage, 145 pieces are formed. furniture options 1 and 10 pcs. furniture of option 2. It is necessary to determine the cost per unit of furniture of option 1. The decision was made on the basis that its market price and production volume are higher than that of furniture of option 2.

After the first stage, the costs of complex production (Z kp) will amount to 100,000 rubles. (80,000 + 20,000).

The cost per unit of product 1 at the section point (C 1-1) can be determined by the formula:

C 1-1 = Z kp / K 1,

where Z kp is the cost of furniture option 2;

To 1 - the resulting amount of furniture of option 1.

C 1-1 = (100,000 - 30 × 40) / 200 = 494 rub./piece.

After the second production stage, costs per 100 pcs. furniture of option 1 will be the costs that came from the first stage, plus the costs of materials of stage 2, plus the costs of processing stage 2: 494 × 200 + 30,000 + 15,000 = 143,800 rubles.

Cost of 1 piece. furniture option 1 - 1438 rub. (143,800 / 100).

Then the calculation can be repeated, taking the furniture of option 2 as the main one.

Using distribution method The cost of both products is calculated.

Example6

The initial data are the same as in example 5. The cost of products after the first redistribution is determined by the formulas:

1) for the first furniture option:

C 1-1 = (Z kp × Cost of furniture option 1 / Sum of costs of all received furniture options) / K 1.

C 1-1 = (100,000 × 600 × 200) / (600 × 200 + 40 × 30) / 200 = 495 rub./piece;

2) for the second furniture option:

C 1-2 = (Z kp × Cost of furniture option 2 / Sum of costs of all furniture options received) / K 2.

C 1-2 = (100,000 × 40 × 30) / (600 × 200 + 40 × 30) / 30 = 33 rub./piece.

Further calculation of the cost of each product after the second production stage is similar to the calculation when applying the elimination method.

The choice of costing method largely depends on the characteristics of the production process and the types of products produced. If these are products of the same type that move from one production site to another in a continuous flow, the process-by-process costing method is preferable. If the production costs of various products differ significantly from each other, then the use of such a costing method cannot provide accurate information about production costs, and in this case it is necessary to use the order-based costing method. In some cases, a mixed option of using two systems is possible, depending on the nature of the movement of products through production areas.

O. I. Sosnauskienė,
head of the PEO

Material costs, as one of the main expense items of any production, are usually under the close attention of employees of the economic planning department, departments involved in cost forecasting and performance analysis. After all, it is not enough to calculate material costs; it is important to analyze the obtained values in their relationship with other indicators.

At the same time, it is difficult to say what the balance sheet calculation formula is for material costs. Indeed, in the data in the “Inventories” line, along with material costs, labor costs in WIP and other expenses can be reflected, depending on the method of assessing WIP. In addition, the line “Inventories” reflects the materials themselves in the form of their warehouse balance, which has not yet been used up, accordingly, they are not yet material costs, as well as finished products, the material costs for which have already taken the form of a finished product of labor and not are WIP, etc.

Formula for material productivity by balance

The formula for material productivity on the balance sheet assumes information from the financial statements. In this case, the value of material costs is taken from the appendix to the balance sheet (form No. 5, first line), and the value of revenue from the profit and loss statement (form No. 2).

Material costs on the balance sheet

The share of material costs to the total cost shows the dynamics of material intensity, and if the formula for profit per 1 ruble of material costs is Pr/MZ, then to calculate the share it is necessary to correlate MZ/Sst full, where Sst full is the total cost of production.

According to the norms of PBU 4/99, accounts 25 and 26 do not have balances, and are closed at the end of each reporting period. It turns out that for material costs the calculation formula is based on the balances of accounts 20-23, 29, and is reflected in the balance sheet in the “Inventories” line of section II of the Asset. It is this position that is the main one when constructing cost forecasts, cost calculations and efficiency analysis. It is generally accepted that material costs in the balance sheet are a line with code 1210, if you use regulated coding, or “Inventories” by its name in the form 0710001 according to OKUD.

Material costs: formula

One of the main coefficients that is calculated using the material costs indicator is material intensity. To calculate it, it is necessary to divide material costs by the total cost of manufacturing goods. This indicator reflects the share of material costs in the total cost of goods.

The peculiarities of accounting imply that all companies have the right to independently determine the list of material costs and reflect it in their accounting policies. Accounting provides accounts from 20 to 29 for accounting for material costs. In the balance sheet, line 1210 is provided specifically to reflect them.

About business

As the calculation showed, the value of the coefficient over the past years is significantly higher than all standard values. PJSC LUKOIL is a highly profitable enterprise. In 2020, the profitability ratio exceeded 100%, which indicates that the company has significant income from other activities not related to the sale of products. In this case, the drop in the coefficient in 2020 does not play a significant role, since its value is extremely high, and the increase next year indicates that the difficulties encountered were temporary.

An enterprise with large production volumes must carefully monitor its material costs, for which special indicators are used in accounting. The efficiency of using material resources can be determined through several general indicators, including:

How to correctly calculate and take into account material costs

Thus, in accordance with the Tax Code of the Russian Federation, direct material costs are expenses of an economic entity aimed at providing the production cycle with the necessary materials, raw materials, semi-finished products, components, as well as for the purchase of services and work necessary in production. In other words, direct costs include expenses that are directly related to the implementation of the main activity. The rest of the company's business expenses should be classified as indirect.

Please note that in accordance with tax accounting standards, the list of financial expenses is closed. But accounting contains only a definition, without a list of listings (clause 8 of PBU 10/99). Consequently, each company must independently consolidate a comprehensive list of material costs in its accounting policies. In fact, the accounting policy will describe the same expenses as in fiscal legislation, only taking into account the specifics of the activity of an economic entity.

Product material intensity: calculation formula for a business plan

The following types of material intensity of products are distinguished: absolute, structural and specific. Absolute material consumption shows the consumption rate for one finished product. Structural material intensity characterizes the share of a group of materials in the manufacture of the finished product. Specific material consumption is the structural material consumption reduced to a natural unit of measurement (meters, liters, etc.).

Material consumption- this is an indicator that reflects the consumption of materials per 1 ruble of manufactured products. This indicator is measured in money. It is used in the analysis and accounting of inventories in an enterprise. The indicator is the inverse of the indicator material productivity. Material productivity characterizes the amount of products produced from each ruble of reserves.

Cost profitability formula for calculating the balance sheet

According to form No. 2, gross profit corresponds to line 2100. Expenses are taken from the “cost of sales” indicator for No. 2120. In essence, this is the return on cost. Other expenses of the enterprise are not taken into account here: commercial, administrative and other expenses.
From it we can judge the level of markup on goods sold. To analyze the profitability of expenses for a certain group of goods, a similar formula is used. For the calculation there will be indicators for each group of goods: profit from sales and cost.

Cost return(Return on Cost of Sales - ROCS, РЗ) is a relative financial indicator that allows you to determine the efficiency of using the company's resources in its activities, the ratio of balance sheet profit to the total cost of goods, works, and services sold.

Method for calculating the optimal interoperational balance of costs and results of production of an industrial enterprise using the example of a pulp and paper mill

Statistical models of the interoperational balance of costs and results of production in physical terms are the basic tool for measuring costs and results in an enterprise. At the same time, the balances themselves, as a result of solving the models, are presented in the form of tables in natural indicators (Table 1) and cost indicators (Table 2). The first differs from the second in the presence in the latter of total lines in the I and II quadrants, as well as in III and IV quadrants and the “Total” line (gross turnover). In physical terms, products, works, and services are measured in natural units, and in value balances they are measured in monetary units.

There are traditional planning methods, but to date they have not been able to accurately convey the essence of the situation. Their error in calculations is too great. For this reason, a new method was developed for measuring costs and production results at the stage of ongoing process planning, implemented using computer technology. The method was developed by Professor M.D. Kargopolov. This approach is based on interoperational balances of costs and production results. These balances are built on the basis of the well-known principles of intersectoral balances, implemented using the “input-output” method of V. Leontiev. The proposed balances, along with variable resources, also work with conditionally constant ones. This allows them to be used as an accurate tool for measuring the costs and results of production in an enterprise. The error of this method is minimal and provides an objective assessment and forecast.

Cost return

The total variable cost variance for labor costs shows the difference between standard direct labor costs and actual ones. This deviation may be caused by a difference between what the cost of hours of labor actually paid should have been and what it actually was. Labor variance can also be caused by changes in productivity. That is, the difference between how many working hours should have been worked and how many hours were worked.

Cost-effectiveness shows the level of profit per ruble of funds spent and is calculated for the enterprise as a whole, its individual divisions and types of products. We will tell you how to determine cost-benefit ratios, give an example of calculation and analysis of results, and outline ways to increase profitability.

Balance sheet asset

If the terms of the contract stipulate that the organization makes periodic payments (including royalties) for the granted right to use intellectual property objects, the user organization includes these amounts in the expenses of the current period. That is, account 97 “Deferred expenses” is not used. If, under the terms of the contract, payment for the right to use intangible assets is made in the form of a fixed one-time payment, then this amount cannot be written off at a time. It is taken into account as part of deferred expenses and written off as expenses during the period of use of the object established in the contract (clause 39 of PBU 14/2007).

Example 1. At the cash register, 20 thousand rubles were received from the current account for business expenses using a check. As a result of this operation, two active items changed: “Cash” (increase by 20 thousand rubles) and “Current account” (decrease by 20 thousand rubles), but the overall total of the asset did not change. The form of placement of funds and their composition have changed - part of the funds from the current account has moved to the cash desk.

Current ratio

This is one of the most important financial ratios. The higher the indicator, the better the solvency of the enterprise. A coefficient value of more than 2 is considered good. On the other hand, a value of more than 3 may indicate an irrational capital structure; this may be due to a slowdown in the turnover of funds invested in inventories or an unjustified increase in accounts receivable.

Cash in hand and in bank accounts.
Accounts receivable net. Net accounts receivable are determined by subtracting the allowance for bad debts from the accounts receivable balance.
Cost of inventory inventories. Inventories should have a relatively rapid turnover within a year.
Other current assets (deferred expenses, investments in securities, etc.)).

Material costs (costs) occupy a significant part of the expenses in the economic activities of the enterprise. The tax base for income tax depends on their correct calculation, as well as when calculating the “simplified” tax with the object of taxation “”. The list of material costs is defined in Chapter 25 of Art. 254 NK.

1. Material expenses include the following types of expenses:

1) raw materials and supplies for the production of goods (performance of work, provision of services) and their components;

2) materials for packaging goods and other needs related to the production of goods (testing, control, operation, maintenance of fixed assets, etc.);

3) tools, fixtures, equipment, instruments, laboratory equipment, special clothing and other means of individual and collective protection in accordance with the legislation of the Russian Federation, and other property that is not depreciable. (previously it was MBP - low-value wearable items). The cost of such expenses is included in the material costs in full when it is put into operation (issued to employees upon request, invoice and other documents);

4) components for installation, semi-finished products for additional processing;

5) purchase of fuel, energy of all types, water for technological purposes, generation of all types of energy, including for own needs, heating of buildings, and the costs of production or acquisition of capacity, costs of transformation and transmission of energy;

6) acquisition of works and services for the needs of the enterprise (of a production nature), performed by third-party organizations, individual entrepreneurs, structural divisions of the taxpayer.

Services (works) of a production nature include:

Performing individual operations for the production (manufacturing) of products, performance of work, provision of services,

Processing of raw materials, materials,

Monitoring compliance with technological processes,

Maintenance of fixed assets and other work.

Transport services for the transportation of goods within the organization (for example, movement of raw materials, tools, parts, etc. from the central warehouse to the workshop (department)), carried out by third-party organizations, individual entrepreneurs, structural divisions of the taxpayer itself; as well as delivery of finished products under the terms of agreements (contracts);

7) maintenance and operation of fixed assets and property for environmental purposes (sewage treatment plants, ash collectors, filters). This also includes the costs of burial, reception, storage, destruction of hazardous waste, wastewater treatment, the formation of sanitary protection zones on the basis of sanitary and epidemiological rules and regulations, payments for maximum permissible emissions of pollutants into the environment, and other similar expenses.

2. Material costs include:

The cost of inventories based on their purchase price excluding VAT and excise taxes (except for cases provided for by this Code),

Commission fees to intermediary organizations for services rendered,

Import duties and taxes,

Transportation and other costs associated with their acquisition.

If surpluses are discovered during the inventory, when property is received as a result of dismantling or disassembling fixed assets being taken out of service, during repair, reconstruction, modernization, technical re-equipment, partial liquidation of fixed assets, the cost of material expenses is considered as the amount of income received by the taxpayer on the basis of paragraph. 13 and clause 20, part 2, art. 250 NK.

3. When non-returnable packaging is received from the supplier along with inventories, its cost is included in the amount of acquisition costs.

When a returnable container is received from a supplier along with inventory, if its price is included in the price of materials, its cost is excluded from the purchase price for the amount of its possible use.

How to determine returnable and non-returnable packaging? The conditions for containers and packaging of goods are specified in contracts for the supply of materials.

4. If the taxpayer uses products of its own production as raw materials, materials, semi-finished products, spare parts, components and other expenses, or if the taxpayer includes the results of work, services produced on its own as part of material costs, the assessment of these products, work, services is carried out on the basis of Art. 319 NK.

5. The amount of material expenses of the current month is reduced by the value of the remaining inventory transferred to production, but not yet used at the end of the month.

6. How to account for return costs? The amount of material costs is reduced by the cost of returnable waste. Returnable waste is the remains of raw materials, materials, semi-finished products, coolants and other material resources generated during the production of goods (provision of services, performance of work), which have partially lost their consumer qualities and, as a result, are used at additional costs or are not used for their intended purpose.

Returnable waste does not include:

Inventories that are transferred to other departments according to technological production for further use,

By-products resulting from production.

Returnable waste assessment:

1) at a reduced price of the initial material resource when using it for further production, but at increased costs;

2) at the selling price when selling externally.

7. For tax purposes, the following costs are equated to material expenses:

1) expenses for land reclamation and other environmental measures, with the exception of Art. 261 NK;

2) losses due to shortages or damage during storage and transportation of material reserves within the limits of natural loss norms;

3) technological losses during production or transportation. Technological losses are losses arising as a result of technological production.

4) expenses for mining.

8. When writing off raw materials and materials for production, the enterprise reflects the write-off method in its accounting policy:

1.by cost per unit of inventory;

2.at average cost;

3. at the cost of the first materials (FIFO method);

4. at the cost of the latest materials (.

Material costs include everything that has a price and quantity, and that is used directly in production, performance of work, provision of services, as well as costs associated with their promotion to the buyer: packaging, storage, transportation, etc.

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Since all companies determine the list of material costs in accounting themselves, the characteristic features of accounting for such expenses will be directly dependent on the characteristics of the activities of a particular company.

The unity of the approach to their accounting lies only in the fact that material costs, representing a component of production costs, are taken into account in accounts 20 to 29.

General calculation formula

The formula for material costs will be as follows:

Mz = Zmdt + Zte + Zsip + Zstop + VDSm.

Zmat – expenses for materials that are required to carry out the production process;
Zte – costs for energy and fuels and lubricants;
Zsip – costs for the acquisition and use of natural raw materials;
Stop – the cost of services performed by third-party companies;
VATm – the amount of VAT paid by the supplier.

Material costs on the balance sheet

Let's look at unified reporting forms and establish how to find material costs in the balance sheet.

There is no special provision for accounting for material costs in the balance sheet. lines. But, despite this, accounting provides several accounts for their accounting: 20, 21, 23, 25, 26 and 29.

Material Cost Analysis

Material costs are one of the main cost items of any production process. In this regard, they are usually under the close supervision of employees of the economic planning department. After all, it is not enough to calculate material costs; it is also important to analyze the results obtained.

Another approach to determining material intensity is to calculate the share of material costs in production. In this case, material intensity is the ratio of material costs to the number of manufactured goods in value or physical terms.

An increase in this indicator means that the amount of material costs per product has increased, and the profitability of goods has decreased. That is why managing material intensity is the key to reducing costs and increasing production profitability.

Separately, you can determine the profit per 1 ruble. material costs. This can be done using the formula:

PMZ is the profit that falls on one ruble of material costs;
P – income from the sale of goods;
MH - the amount of material expenses that were incurred for the manufacture of goods.

Material cost ratio

The material cost coefficient is calculated using the formula:

Kmz = MZf / MZp.

MZf – actual expenses of a material nature;
Minimum wages are planned indicators of material costs, which are calculated for the actual volume of production.