Material costs how to calculate the formula. Cost price: calculation formula, types and types of cost price, examples of calculations

How to find material costs in the balance sheet?

The balance of accounts 20 "Main production", 23 "Auxiliary production", 29 "Service production and economy" at the reporting date indicates the balance of work in progress (WIP). The balance of WIP, own semi-finished products (account 21 "Semi-finished products of our own production") and unwritten losses from marriage (account 28 "Marriage in production") are reflected in the asset balance sheet on line 1210 "Inventories" (clause 20 PBU 4/99, Order of the Ministry of Finance dated 02.07.2010 No. 66n).

Recall that accounts 25 "General production costs"And 26" General running costs»At the end of the month have no balance.

At the same time, it is difficult to say what is the formula for calculating the balance sheet for material costs. Indeed, in the data of the line "Inventories", along with material costs, labor costs in WIP and other costs, depending on, can be reflected. In addition, the "Inventories" line reflects the materials themselves in the form of their warehouse balance, which has not yet been consumed, respectively, they are not material costs yet, as well as finished products, material costs for which have already taken the form of a finished work result and are not are WIP, etc.

Material cost analysis

Material costs, as one of the main items of expenditure in any production, are usually under the close scrutiny of employees of the planning and economic department, departments engaged in forecasting costs and analyzing the effectiveness of activities. After all, it is not enough to make a calculation of material costs, it is important to analyze the values obtained in their relationship with other indicators.

One of the main coefficients calculated using the indicator of material costs is material consumption.

Material consumption is calculated as the ratio of material costs to the total cost of production. It shows what is the share of material costs in the total cost finished products.

Another approach to calculating material consumption is to determine the share of material costs in the output. In this case, material consumption is the ratio of material costs to the volume of manufactured products in physical or monetary terms. The growth of the material consumption ratio indicates an increase in the value of material costs per unit of production and a decrease in its profitability. Therefore, material management in an enterprise is the key to reducing costs and increasing production profitability.

P MZ = P / MZ

To calculate the profit per ruble of material costs, the following designations are used in the formula:

П МЗ - profit per 1 ruble of material costs;
P - profit from the sale of products;
МЗ - material costs attributable to products sold.

This indicator is essentially the return on material costs. It shows how much profit (in rubles) brings 1 ruble of incurred material costs.

The ratio of the actual material costs to the planned is the material cost ratio. In this case, the planned material costs are recalculated to the actual output.

Let's give the formula for the coefficient of material costs:

K MZ = MZ F / MZ P,

where K MZ is the coefficient of material costs;

МЗ Ф - actual material costs;

МЗ П - planned material costs calculated for actual production.

One of the most popular concepts in commerce, economic science and entrepreneurship is - the formula for the cost of creating and selling products. The indicator is explained as the total number of funds spent by the company for the production and subsequent sale of a service or product, in strict dependence on the sector of the economy in which the company operates.

Calculation: Existing Waste Cost Types and Types

Today, the cost is divided into marginal and average (in other words, the total cost).

Full cost, means the volume of all production waste of the enterprise, including commercial, aimed exclusively at the production process.

The marginal cost indicator is the unit cost of the product created.

Key types of costs:

Shop... It implies the total volume of all costs of the firm, incurred by all of its production structures that have a direct impact on the creation of the product.
Production... It takes into account the company's expenses incurred by all involved structures of the company, as well as general and targeted spending.
Full cost implies that in addition to the company's expenses for organizing everything production process the release of a product or service, money intended for the final sale of the released product is included in the waste line. In other words, to the production cost of waste are added the costs necessary to build logistics, deliver goods to the end consumer.

In addition to the above types, such concepts as the average industry, individual, actual, as well as full cost are often used.

Structure

The architecture of the cost of waste of the company is built on the basis of the following structural indicators:

Wage. Depending on the deductible cost, wage can be taken into account for auxiliary personnel, the main class of workers, junior maintenance and intellectual personnel.
Deductions for the depreciation of the main assets of the enterprise (renovation of buildings, improvement of the adjacent territory).
Waste on the organization and conduct of social events.
Material expenses of the company. Credited the following types: purchase of raw materials, electricity, general production costs, purchase of components and production equipment.
Waste on the development and implementation of a marketing strategy.

The following balance sheet items are taken into account in the calculation process:

Electricity and fuel used in the process of creating the manufactured product.
The approved salary of the main personnel of the company.
Key materials used in the production of a product (for example, components, semi-finished products, units).
General production costs aimed at delivering the product to consumers (sale), payment of employees involved in the repair of production facilities and fixed assets of the company (premises), intra-production waste.
Depreciation deductions in favor of the main production fund.
Social expenses of the company.

Also taken into account are the costs of paying for the services of contractors, travel allowances and administrative expenses for the maintenance of the management apparatus. The calculation of the cost of spending on the creation of a product may be different depending on which sector of the economy the company operates in.

Material costs are the lion's share of an organization's costs. Their effective assessment and analysis allows making the right management decisions in a timely manner for the rational redistribution of assets and resources of an economic entity. About what is included in material costs, how and where the indicator is reflected in accounting statements and what formulas are calculated, we will tell in the article.

Let's understand the concepts

The definition of what is cost is given not only in accounting, but also in tax. The concepts do not differ significantly, therefore, material costs include the following types of costs:

purchase of inventories, raw materials, components and component parts for fixed assets of production units;
purchase of fuel and fuels and lubricants, electricity, heat energy, water to carry out technological process;
purchase of works, goods and services necessary for the implementation of the production cycle;
losses and shortages of products within the established norms of natural loss;
other amounts of expenses.

It is unacceptable to use the sum of the sold and recyclable waste in the calculations. Waste should be deducted from the material cost indicator.

According to the norms tax accounting, the list of costs is closed. But accounting contains only a definition, without a list of transfers (clause 8 PBU 10/99). The company must independently fix an exhaustive list of costs in its accounting policy... The accounting policy will cover the same costs as in fiscal legislation, only taking into account the specifics of the activity of an economic entity.

Types of matzrat

Despite the strict limitation of the types of expenses in Tax Code, all expenses are classified into direct and indirect expenses. The division is enshrined in Art. 318 of the Tax Code of the Russian Federation. But companies have the right to independently determine the composition of direct and indirect expenses, taking into account legal requirements.

Direct material costs are the costs of an economic entity aimed at ensuring the production cycle necessary materials, raw materials, semi-finished products, components, as well as for the purchase of services and work required in production. Direct expenses include expenses that are directly related to the implementation of the main activity.

The rest of the company's business expenses should be classified as indirect.

Salary of employees, insurance premiums, as well as premiums for the quality of work and other types of labor remuneration cannot be included in the matzot. Labor costs are direct costs of the company, but they cannot be classified as material ones.

Material cost accounting

There is no separate account in the Unified Chart of Accounts for the accumulation of material costs. To reflect information on the cost of expenses incurred in accounting, several accounts are used at once:

In addition to the main accounts, some costs can be attributed to 25 “ODA” and 26 “OXR”. These accounts cannot have a balance at the end of the reporting period, that is, they are subject to attribution to the main cost accounting accounts.

Costs in the balance sheet

Forms of financial statements approved by Order of the Ministry of Finance No. 66n do not contain a separate line for reflecting information on the indicator of the company's expenses. However, the current accounting regulations determine that material costs should be reflected in the balance sheet, line 1210 "Inventories" (second section of the balance sheet asset). Why? The presence of balances on high-value accounts indicates an unfinished production cycle. And work in progress is recognized as an asset of the enterprise, and its price is included in the inventory of an economic entity.

Calculation and evaluation formulas

Matzratsy have a direct impact on the cost of production, and therefore on revenue. Assessment, timely analysis of the structure and dynamics, as well as a systematic calculation of material costs are necessary. A tactical approach to planning and controlling the indicator will ensure the maximum profitability of the enterprise, that is, increase its profitability.

To determine the profitability of expenses, specialists calculate a special coefficient that allows you to find out what profit per ruble of material costs is expected to be obtained, or to estimate the losses.

The formula for profit per ruble of material costs - determining profitability - looks like this:

Profit (loss) per ruble of material costs = profit received from the sale of a specific type of product / total costs associated with the production of this product.

If the obtained value is less than one, then this indicates that the enterprise is unprofitable. If the indicator is equal to one, then the profit received is equal to the expenses, and the organization did not earn anything in the reporting period. If the indicator is more than one, this means that the company is profitable, that is, its activities are profitable.

Determine the material cost rate
Determine the utilization rate of materials
Determine the cost of materials
Determine the efficiency of using material resources
Calculate the ratio of the output of finished products

Task 1. Determine the rate of material consumption

The net weight of the product is 40 kg. Annual release - 2000 pcs. The utilization factor of the material is 0.75. The company plans to increase it to 0.80. The price of 1 ton of material is 8500 UAH.

Determine the actual and planned rate of material consumption and the annual savings from increasing the utilization rate of the material in physical and value terms.

Solution.

Let's find the actual rate of material consumption per unit of production. This can be done using the formula:

Z f = Product weight / material utilization factor (actual)

Let's plug in the values into the formula.

Z f = 40 / 0.75 = 53.3 kg per unit of production.

Let's find the planned rate of material consumption. This can be done using a similar formula. Only in the formula you need to use the planned utilization factor of the material.

Z pl = Product weight / material utilization factor per unit of production (planned)

Let's plug in the values into the formula.

Z pl = 40 / 0.8 = 50 kg per unit of production.

Now we will find the actual material costs for the production of all products.

Z f. total = 53.3 * 2000 = 106 600 kg.

Let's find the planned material costs for the production of all products.

Z pl. total = 50 * 2000 = 100,000 kg.

Let's find the material savings from increasing the utilization rate of the material per unit of the product.

E m. Unit = 53.3-50 = 3.3 kg per item.

Saving material from an increase in the utilization rate of material for all products will be:

E m. Total = 106,600-100,000 = 6,600 kg.

Now the savings Money from the increase in the coefficient of production can be found in two ways.

The first way.

E d = E m. Total. * C

C is the price of the material.

E m. Total. - Saving material from an increase in the utilization rate of the material.

E d = 6 600/1000 * 8500 = 56 100 UAH.

Second way.

E d = E m. Unit. * GV / 1000 * C

ГВ - annual production of products.

E m. Unit - saving material from an increase in the utilization rate of material per unit of product.

C is the price of the material.

E d = 3.3 * 2000/1000 * 8500 = 6600/1000 * 8500 = 6.6 * 8500 = 56 100 UAH.

Task 2. Determine the utilization rate of materials

The net weight of the product is 250 kg. The amount of actual waste during processing is 60 kg. As a result of improving the production technology of product parts, waste will be reduced by 12%.

Determine the coefficient of metal utilization and the specific gravity of waste before and after the change of the technological process.

Solution.

We will find the specific weight of waste before changing the technological process.

In beats. f = In out. / (In ed. + In otkh) * 100

In otkh. - waste weight.

In ed. - the net weight of the product.

Let's plug in the values into the formula.

In beats. f. = 60 / (250 + 60) * 100 = 60/310 * 100 = 19.35%

We will find the material costs for one product before changing the technological process.

Z m. F. = In ed. + In otkh

Z m. F. = 250 + 60 = 310 kg per unit of production.

Now we can find the utilization rate of the metal before the change in the technological process.

To isp. f. = In ed. / Z m. F.

In ed. - the net weight of the product.

Z m. F. - material costs for one product before changing the technological process.

Let's plug in the values into the formula.

To isp. f. = 250/310 = 0.806

Let's find the amount of waste after changing the technological process.

Otx = 50 * (1-0.12) = 50 * 0.88 = 44 kg.

Let's find the specific weight of waste after changing the technological process.

In beats. pl. = 44 / (250 + 44) * 100 = 44/294 * 100 = 14.97%

We will find the material costs for one product after changing the technological process.

W m. Pl. = 250 + 44 = 296 kg.

Now we can find the utilization rate of the metal after changing the technological process.

To isp. pl. = 250/296 = 0.845

Task 3. Determine the rate of consumption of materials

Determine the rate of consumption of materials for one product, if the average weight of the product is 2.1 kg, the utilization rate of the material is 0.9.

Solution.

Let's find the rate of consumption of materials for one product by the formula:

Z m = In ed. / K isp.

In ed. - the average weight of the product.

To isp. - the utilization factor of the material.

Let's plug in the values into the formula.

Z m = 2.1 / 0.9 = 2.3 kg.

Task 4. Determine the efficiency of the use of material resources

The volume of material resources to fulfill the planned target is 960 tons. Losses amount to 6% of the structural weight of the product. After the implementation of measures to save resources, the need for them decreased by 3.2% and losses decreased by 2.6%. Determine the efficiency of the use of material resources before and after the implementation of measures to save resources.

Solution.

Let's find the actual material costs for the period before the implementation of measures. They are equal to the volume of resources to complete the task minus the loss of the structural mass of the product.

MZ f. = 960 * (1-0.06) = 902.4 tons

We will find the actual material costs after the implementation of the measures.

MZ pl. = 960 / (1-0.032) * (1-0.06 + 0.026) = 960 * 0.966 / 0.968 = 929.28 * 0.966 = 958.017 tons.

Now we can determine the efficiency of resource use. To do this, we will use the formula:

E isp. f = Actual material costs / Amount of resources for the plan task.

Let's plug in the values into the formula.

E isp. f. = 902.4 / 960 = 0.94

We will find the efficiency of using resources after the implementation of measures.

E isp. pl. = 958.017 / 960 = 0.998

Task 5. Calculate the coefficient of output of finished products

The actual weight of the raw materials that went into production is 840 tons. The weight of the finished product is 315 tons. The finished product yield in the previous year was 0.350, the industry average finished product yield was 0.380.

Solution.

Let's find the coefficient of output of finished products. This can be done using the formula:

Out. = M pr / M s

M pr - the weight of the finished product.

М с is the weight of raw materials that went into production.

Let's plug in the values into the formula.

K out = 315/840 = 0.375

Let us find the change in the coefficient of output of finished products in comparison with the previous year. Let's use the formula:

∆ Kout. = K out. pl. - Out. f.

Out. pl. - coefficient of output of finished products in the current year.

Out. f. - coefficient of output of finished products in the previous year.

∆ Kout. = 0.375-0.35 = 0.025