How to make cost accounting entries?

Cost refers to the expenditure of daily business activities of an enterprise, which can generally be divided into main business costs and other business costs. So how to make the accounting entries of the two separately?

Accounting entry of main business cost

1. Carry-over cost when confirming sales revenue.

Debit: main business cost

Loans: Goods in stock

2. At the end of the period, the main business cost will be carried forward to the profit debit of this year.

Debit: this year's profit

Loan: main business cost

Accounting entries of other business costs

1. Carry-over cost when sales materials or other businesses confirm revenue.

Debit: other business costs

Loan: raw materials

Accumulated depreciation (when renting fixed assets)

Cumulative amortization (when renting intangible assets)

Bank deposits and other subjects

2. At the end of the period, other business expenses are carried forward to the profit debit of this year.

Debit: this year's profit

Credit: other business costs

Differences between main business costs and other business costs

The main business cost refers to the cost incurred by an enterprise in its regular activities such as selling goods and providing services. Enterprises generally transfer the cost of selling goods and providing services to the main business cost while confirming the income of main business such as selling goods and providing services.

Other business expenses refer to the expenses incurred by an enterprise in other daily business activities other than its confirmed main business activities. Other business costs include the cost of selling materials, depreciation of leased fixed assets, amortization of leased intangible assets, cost or amortization of leased packaging materials, etc. If the investment real estate is measured by cost model, the depreciation or amortization of the investment real estate also constitutes other operating costs.

cost accounting

Cost account is an accounting account that reflects costs and expenses. It is used to calculate the occurrence and collection of costs and provide accounting information related to costs. The contents of cost and expenditure are different, which can be divided into production cost, manufacturing cost, labor cost, R&D expenditure and engineering construction.