2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Each enterprise carrying out production activities is faced with the need for additional costs aimed at improving the efficiency of the process. Maintaining equipment, machines, premises in a condition suitable for operation is a necessity. The larger the scale of the enterprise, the higher its overhead (indirect) costs. To obtain a clear understanding of the amount of costs of this kind, it is necessary to keep records of them separately from the main production.
Accounting
Account 25 “General production expenses”, as a rule, is maintained at enterprises of a production nature, but in relation to the balance sheet it is active, designed to summarize and distribute information, closes every calendar month. The debit reflects all costs, expenses of a general production nature. The credit of the account is intended for writing off the calculated amount to the cost of production. 25 the account has no balances at the beginning of the period and its end, is not reflected inthe final balance, the turnover of the account must be equal at the end of each reporting period. Analytics is conducted for each type of expenses separately.
Cost Items
Depending on the provisions approved in the accounting policy of the organization, and in accordance with PBU, each company allocates costs that cannot be fully included in a particular type of product. Such costs are attributed to account 25, summed up and distributed by type of manufactured products in proportion to the selected indicator (cost, payroll, consumption of current assets, etc.). ODA is similar in structure to production, but their separate accounting and control provide an opportunity for a deeper analysis of costs and identification of problem areas of the main process. 25 account summarizes the following types of expenses:
- Materials, raw materials, spare parts, consumables.
- Non-current assets of the enterprise.
- Depreciation of equipment and machines.
- Intangible assets.
- Remuneration of employees employed in general production shops.
- Deductions from salary.
- The cost of repairing machinery, equipment.
- Maintenance, maintenance, repair of own and rented premises of an economic and industrial nature.
- Utility expenses.
- OS upgrade.
- Production tool, inventory, devices, MBP.
- Guard content.
- Maintenance of the production process.
- Occupational safety.
- Wastewater treatment plant, environmental protection.
- Taxes to budgetsvarious levels.
- Other expenses.
Reflecting the amount of costs
25 The debit account sums up all ODA written off, during the month the turnover accumulates, and as a result shows the total monetary value of expenses. At the same time, accounting entries of the following plan are compiled:
- Dt 25 Kt 02, 05. Depreciation deductions of intangible assets and fixed assets have been accrued.
- Dt 25 Ct 10, 16. Materials used for general production (OPR) needs written off.
- Dt 25 Ct 69, 70. Salary for ORP employees accrued, deductions made to funds.
- Dt 25 Ct 60, 76. Services provided by third parties were written off as ODA costs.
Carryover of costs to product cost
At the end of each month worked, account 25 should be closed. The amount of expenses in the debit of the account is calculated and debited to the main production, that is, it is included in the cost of manufactured products. When producing several items of goods, overhead costs are divided between them in proportion to the selected coefficient. Compiled accounting (record) posting (Debit 20 - Credit 25). The amount of the debit turnover must be equal to the amount of the write-off on the loan, the balance on account 25 is not allowed. With an automated accounting system, the process of closing 25 and 26 accounts occurs automatically when the "period closing" function is launched. At the preparatory stage, depreciation is charged for equipment and machines employed in the development and production work, research and development, auxiliary production and the main cycle. Next, the programin accordance with the settings, writes off expenses from account 25. After the closing procedure, it is necessary to check the balance sheet and analyze the account for balances.
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