Actual cost price

Under the cost of production is understood the monetary expression of all costs incurred by the enterprise in its production. Calculation of this value is necessary for the formation of prices for finished goods and the adoption of management decisions aimed at increasing the profitability of the business entity. The cost price can be planned and actual.

The first type of costs includes the maximum possible costs of the enterprise for the manufacture of goods. They are calculated on the basis of plans drawn up for the upcoming periods. The actual cost price is a monetary expression of the means actually expended on the goods released.

The inclusion in inventory of inventories involved in technological processes is carried out proceeding from the financial resources actually spent for their acquisition . The actual cost price of circulating assets is a monetary expression of the costs incurred by the organization for their acquisition. They include:

- amounts paid for tangible assets in accordance with the concluded contracts;

- amounts spent by the organization for information and consulting services, the provision of which is related to the acquisition of material and production reserves;

- fees paid for customs clearance;

- the amount of non-refundable taxes, the payment of which is included in the value of material values;

- the monetary equivalent of the services of intermediary organizations;

-costs incurred for the procurement and transportation of stocks (material-production) to the place of their use;

- costs incurred by the organization for the processing of current assets, for acceptance by them of the state necessary for use in technological processes (packaging, sorting);

- general economic expenses directly related to the acquisition of stocks;

- other costs associated with the purchase of MPZ.

The actual cost price of the output of the organization is a material and production reserve, which is intended for sale. Accounting and determination of costs incurred during the technological cycle, the business entity conducts on the basis of the procedure that is established to identify the amount of costs for certain types of goods. Thus, the actual cost of products ready for sale is a valuation of raw materials and materials, natural and labor resources, fixed assets and energy that the organization has spent during the production process.

The enterprise can issue accounting of the issued goods in two ways. The criterion for the reflection of finished products at the first of them is the actual production cost. In the second method, the goods are accepted for accounting according to planned or standard costs.

The actual cost of production (finished) at the first way of reflection in the accounting registers comes to the debit of account 43 "Finished products", in correspondence with the credit of account 20 "Main production". Organizations use this method of accounting for released products most often.

Actual costs incurred by a business entity in the manufacture of goods can be calculated only after the end of the reporting month, when both direct and indirect costs are determined . In this regard, the cost of products sold in the same period, can not be calculated. In order to avoid this inconvenience, there are certain ways to write-off finished products:

- at the cost of one unit;

- at the average cost price;

- using the FIFO method;

- using the LIFO method.