ERP Cost Calculation

Cost = product cost + period cost

Product cost calculation includesDirect Material fee, Direct labor costsAndManufacturing fee.WhileManufacturing feeByIndirect variable manufacturing fee(Such as fuel and machine boring) andIndirect fixed manufacturing fee(Directly related to production, such as wages and office repair fees.

The period fee is the cost of the company's management.

Their results are as follows:

I. Various Cost Calculation:

(1)Full Cost Calculation: Absorption cost calculation refers to the calculation of product cost and inventory cost.Direct Material,Direct salary,Manufacturing costs,Management FeeUse all the other computing methods. It is a common practice of financial accounting and a traditional cost calculation method adopted by China.

(2)Variable Cost Calculation: "Direct cost calculation" refers to the calculation of product cost and inventory cost, which only covers the variable cost of the product during the production and operation process (suchDirect Material,Direct salary,Variable manufacturing costs), AndFixed manufacturing feeThe full amount is included in the profit and loss of the current period based on the "period cost", and is used as a project to reduce the profit of product sales. (The yellow part is used as the duration fee)

(3)Manufacturing Cost Calculation:

Different from full-cost computing-- When calculating the product cost and inventory cost, onlyDirect Material,Direct salaryAndManufacturing costsAndManagement FeeThe service is treated as the expense during the period, and the full amount is included in the current profit and loss during the period, which is deducted from the product sales profit.

Different from variable cost calculation-- There is no requirement for Manufacturing Cost CalculationManufacturing costsThen it is dividedVariable manufacturing costsAndFixed manufacturing costInsteadManufacturing costsThe product cost and inventory cost are included according to certain Allocation Standards.

 China's enterprise accounting standards stipulate that enterprises should adopt manufacturing costAlgorithm. That is, to reform the traditional cost accounting method, from the full cost calculation method to the manufacturing cost method, the product cost accountingManufacturing costsUntil,Management Fee,Sales feeInstead of amortizing the product cost, the period cost is directly included in the current profit and loss. (The yellow part is used as the duration fee)

Ii. Cost Calculation Method-rolling Addition

This is an iterative computing method. The structure and basis of rollback is the product material list. It starts from the lowest level of the product structure and accumulates from the lower level to the higher level.

Rate =Estimated total cost of a period/Estimated number of work hours completed in that period

(The rates for fixed manufacturing fees and variable manufacturing fees are calculated separately)

Iteration Process: The cost of each material project at different levels in the bill of materials = cost incurred at the current layer + accumulated cost at the lower layer

The lowest-level material item is the purchased component.

Underlying cost = material fee (procurement component fee) + procurement indirect fee (management fee, transportation and storage fee of the procurement department)

Procurement indirect fee = procurement component fee x procurement indirect Rate

Cost of this layer = direct labor fee + manufacturing fee

Direct labor fee = labor rate recorded by the Work Center X number of workers recorded by the process route

Manufacturing fee = manufacturing rate recorded by the Work Center × number of workers in the process route record

Iii. Calculation of indirect fee-Activity-Based Costing): Distribute the indirect production cost to each operation. Calculate the indirect cost of each product in each operation by means of cost = unit cost x unit quantity, then, the indirect cost of the product is obtained.

Reference concept: Rate, unit workload fee, for example:

Rate = estimated total cost for a certain period of time/Estimated number of work hours completed in this period

For example, a company processes and produces two types of products A and B at the same time in the same processing workshop. It is known that the working hours of products A and B are 2.5 and 2, respectively, the cost of direct materials is 36 and 30. labor labor hours rate is 7, and manufacturing cost distribution rate is 18 by labor hours. the traditional cost accounting process is as follows: