What items does the product production cost include?

The items of product production cost include: direct material cost, direct labor cost and manufacturing cost.

1) The subject of "production cost" accounts for various production costs incurred by enterprises in industrial production, including the production of various products (finished products and homemade semi-finished products), homemade materials, homemade tools and homemade equipment.

The direct production expenses incurred by the enterprise, the manufacturing expenses borne by each production workshop, and the services and products provided by the auxiliary production workshop for the basic production workshop, enterprise management department and other departments shall be distributed to the beneficiaries according to certain distribution standards at the end of the period (month) and debited to this account; The cost of finished products and self-made semi-finished products that have been produced and accepted by the enterprise shall be included in the undergraduate purpose at the end of the period (month); The debit balance at the end of this course reflects the cost of products in process that the enterprise has not finished processing.

2) "Manufacturing cost" accounts for the indirect expenses incurred by the production workshop (department) of the enterprise for producing products and providing services. This course can be accounted for in detail according to different production workshops, departments and expense items.

Consumption of machinery and materials in the production workshop, salaries of managers and other employees, depreciation of fixed assets, office expenses paid, utilities, seasonal shutdown losses, etc. Debit to undergraduate purpose; The distribution of manufacturing expenses will be included in the relevant cost accounting objects and credited to this account.