Accounting. Accounting for inventories (the most important)

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Accounting. Accounting for inventories (the most important)

Lecture notes, cheat sheets

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54. Accounting for inventories

inventories - assets used as raw materials, materials, etc. in the production of products intended for sale, as well as for the management needs of the organization.

Inventories are accepted for accounting at actual cost, which is formed from the acquisition costs.

For inventory accounting accounts 10 "Materials", 15 "Procurement and acquisition of material assets", 16 "Deviation in the cost of material assets".

On account 10 "Materials" stocks are accounted for at the planned cost. After the preparation of the annual reporting cost estimate, the planned cost of materials is adjusted to the actual cost.

When accounting for materials at accounting prices the difference between the cost of valuables at these prices and the actual cost of acquiring (procuring) valuables is reflected on account 16 "Deviation in the cost of materials".

The excess of the actual cost over the planned cost is reflected in the following posting:

Debit account 20 "Main production"

Account credit 16 "Deviation in the cost of materials."

Negative variances (actual cost is lower than planned) are reversed.

Organizations that procure stocksrelating to funds in circulation, account 15 "Procurement and acquisition of material assets" is used.

1. Reflected the purchase price of inventory:

Debit account 15 "Procurement and acquisition of material assets"

Credit of account 60 "Settlements with suppliers and contractors".

2. The cost of actually received and credited stocks is reflected:

Debit of account 10 "Materials" Credit of account 15 "Procurement and acquisition of material values".

3. A positive amount of the difference between the actual cost and the book price is reflected:

Debit account 16 "Deviations in the value of material assets"

Credit of account 15 "Procurement and acquisition of material values".

4. The negative amount of the difference between the actual cost and the book price is reflected:

Debit account 15 "Procurement and acquisition of material assets"

Credit account 16 "Deviations in the value of material assets."

Write-off of inventories to production is carried out by one of the following methods:

▪ at the cost of each unit;

▪ at average cost. The assessment of inventories is carried out for each group (type) of inventories by dividing the total cost of the group (type) of inventories by their quantity, which consists of the cost and the amount of balance at the beginning of the month and the inventory received during the given month;

▪ at the cost of the first acquisition of inventories (FIFO method). Inventories that are the first to enter production (sale) must be valued at the cost of the first acquisitions, taking into account the cost of inventories listed at the beginning of the month.

▪ at the cost of the most recent acquisition of inventories (LIFO method).

The write-off of the cost of inventories is reflected in the entry:

Debit of account 20 "Main production" (25 "General production expenses", 26 "General expenses", 44 "Sales expenses")

Credit account 10 "Materials".

Author: Kabkova E.N.

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