Each organization has the right to independently determine which of its costs are attributed to direct costs and which are indirect. This procedure should be reflected in the accounting policy. The Ministry of Finance recommends splitting expenses in accordance with established accounting rules. Direct costs are considered material costs of wages of employees and the unified social tax charged on this amount. It also includes depreciation on the fixed assets used.
It is necessary
Primary accounting documents
Instructions
Step 1
Direct costs are written off as they are realized, that is, in parts, and indirect costs are written off immediately. In the current reporting period, only those expenses that relate to goods or services already sold should be considered. The balances are related to work in progress, shipped products and warehouse balances.
Step 2
Completed, but not accepted services and works, remnants of semi-finished products and backorders refer to work in progress. Work in progress should be assessed at the end of each month. For the assessment, the accountant uses data from primary documents on balances and movement of materials and raw materials, data on finished products for each workshop, as well as data on direct costs for the current month. The entire amount of average work-in-progress balances at the end of the month is included in direct costs of the next month.
Step 3
Assessment of work in progress is carried out at the standard or actual cost, direct costs, the cost of raw materials and materials. The order should be established by the accounting policy of the enterprise. All enterprises evaluate the average warehouse balance in the same way, which is independent of the specifics and type of activity and is prescribed in the Tax Code.
Step 4
The accountant calculates the average warehouse balance on the basis of data on direct costs attributable to the warehouse balance of finished products at the beginning of the month and at the end, as well as on the basis of information on direct costs for products produced during the month. To do this, it is necessary to add direct costs at the beginning of the month for the balance of finished products with direct costs for the cost of finished products that were released during the month. From the resulting amount, you must deduct the direct costs of products that were shipped within a month.
Step 5
To estimate the average balances of shipped but not sold products, data on shipment and information on direct costs for the current month, reduced by direct costs, are needed. It is necessary to add direct costs on the balance of shipped products at the beginning of the month with direct costs distributed to the cost of shipped finished products during the month, deduct direct costs on products sold during the month from the result.
Step 6
Enterprises that provide services can include direct costs in full to reduce income from sales or production. In this case, there is no need to distribute direct costs to the remainder of the work in progress.
Step 7
Unsold but shipped products may be in the event that the rights to it have not yet been transferred to the buyer, as well as if the products are transferred through an intermediary.
