How to make accounting entries for manufacturing expenses?

Manufacturing overhead refers to the enterprise for the production of products and the provision of services and the indirect costs incurred, including the production sector of the enterprise's water and electricity costs, depreciation of fixed assets, amortization of intangible assets, management personnel compensation and so on. What should be the accounting entries for manufacturing overhead?

Accounting entries for manufacturing costs

1, if the production plant consumption of machinery and materials:

Borrow: manufacturing costs

Loan: raw materials

2, if it is the production of management personnel wages and other employee compensation:

Borrow: manufacturing costs

Loan: payable remuneration

3, if it is the production workshop management staff salary:

Borrow: manufacturing costs

Loan: payable remuneration

3, if the production workshop depreciation of fixed assets:

Borrow: manufacturing costs

Loan: Accumulated depreciation

4, if the production workshop to pay for office expenses, utilities, etc.:

Borrow: Manufacturing costs

Loan: Bank deposits

5, if the seasonal stoppage of losses:

Borrow: Manufacturing costs

Loan: Bank deposits

5, if seasonal stoppage of losses:

Borrow: Manufacturing costs

Loan: Manufacturing expenses

Support: Employee remuneration payable >Borrow: manufacturing costs

Loan: raw materials/payable salaries/bank deposits

6, if the allocation of manufacturing costs to the relevant costing objects:

Borrow: production costs/labor costs

Loan: manufacturing costs

7, seasonal production enterprises manufacturing costs throughout the year the difference between the number of actual occurrences and the number of allocations, divided by which belongs to the next year to prepare for the start of production can be set aside for distribution in the next year, the rest of the actual incurred amount is greater than the difference in the amount of allocation:

Borrow: Production Costs - Basic Production Costs

Loan: Manufacturing Expenses

If the actual amount of less than the difference in the amount of allocation, then do the opposite accounting entry.

What are raw materials?

Raw materials refers to the enterprise in the production process after processing to change its form or nature and constitute the main entity of the product of a variety of raw materials and primary materials, auxiliary materials, fuel, repair spare parts, packaging materials, purchased semi-finished products and so on.

Raw materials are an important part of the enterprise inventory, its varieties, specifications, in order to strengthen the management and accounting of raw materials, the need for its scientific classification. Production and operation of materials, debit "production costs", "manufacturing costs", "selling expenses", "management costs "etc., and credit to the account. The carrying cost of materials sold is debited to the "Other Business Costs" account and credited to the "Other Business Costs" account. To issue materials commissioned to be processed by outside organizations, debit the account of "commissioned materials" and credit the account. Using the planned cost of materials for daily accounting, issued materials should also be carried forward material cost differences, the planned cost of issued materials will be adjusted to the actual cost. The use of actual cost of materials for daily accounting, the actual cost of materials issued, you can use the first-in-first-out method, weighted average method or individual determination method to determine the calculation. The debit balance at the end of this account, reflecting the planned cost or actual cost of materials on hand.