The calculation of the cost of work in progress is carried out at the end of the month when forming the cost price and closing the accounting period. The actual cost of work in progress is calculated using various methods, depending on the specifics of production. Let's calculate the actual cost of work in progress by distributing direct costs between execution and work in progress in proportion to the contractual value of orders.
It is necessary
- Accounting data:
- - on the volume of work in progress;
- - on the actual direct costs of the enterprise for the month (account 20 "Main production").
- Contracts for the performance of work concluded with the customer.
Instructions
Step 1
Determine the natural volume of work in progress (backorders) according to the inventory data at the end of the month. Inventory data is reflected monthly in the inventory lists, or in other documents that record the execution of production orders. Determine the contractual (estimated) value of outstanding orders (under contracts for the performance of work concluded with the customer) at the beginning and end of the month, calculate the contractual (estimated) value of orders completed within a month.
Step 2
Determine the share of work in progress in the total number of orders at the end of the month. Calculate it as follows: to the contractual (estimated) value of unfinished orders at the beginning of the month, add the contractual (estimated) value of orders completed within a month. Divide the contractual (estimated) value of outstanding orders at the end of the month by the date received.
Step 3
Calculate the actual WIP value. To do this, allocate direct costs between completed orders and work in progress as follows.
Take the remainder of the actual amount of direct costs at the beginning of the month, add the total amount of actual direct costs according to accounting data (turnover on the debit of account 20 "Main production"). By multiplying the total direct costs for the month and their balance at the beginning of the month by the share of work in progress at the end of the month, you will get the actual value of the work in progress at the end of the month.
Step 4
Indicate in the accounting policy the order of allocation of direct costs of execution and "unfinished". In accordance with the Methodological Guidelines of the Ministry of Taxes and Levies of Russia on income tax, you can choose an economically justified indicator by which direct costs are distributed: the cost of orders (contractual, estimated, cost according to the amount of direct costs in a specific order) or natural indicators, if these indicators are different orders will be comparable (kilometers, etc.).
