beigesoftware - Accounting for manufacturing (producing).

Accounting for manufacturing (producing).

Keywords: Accounting for manufacturing, direct and indirect labor, cost of product.

Beigesoft™ EIS automatically calculates: "cost of product = a cost of materials plus additional costs (direct labor, packaging etc)". This method is widely used in many countries.

Rob made on Jan 17 12 Pizza with bacon frozen and 12 Pizza with cheese frozen. There are two documents for manufacturing:

Manufacturing process that makes a product in progress by using materials and usually direct labor cost, and it makes accounting, draw material and warehouse entries (warehouse receipt/issue)
Manufacture. It just transfers a completed product in progress into a finished product, and it makes accounting, draw material and warehouse entries

Bob filled this "Manufacturing process" for 12 Pizza with cheese frozen:

Bob added one half of direct labor cost 45.91 (22.95) from the "Inventory capitalized cost temporary" account (see the "Wage" full report). After completing and posting its full report is:

Then Bob filled and posted this "Manufacture" based on that "Manufacturing process":

Bob made similar documents for 12 Pizza with bacon frozen with the rest of the direct labor cost 22.96 USD.

* You have to make sure that you (your business activity) are subject to this method (product cost) according to the law!

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