Processing fees, etc. are included in the consignee’s inventory

Unreasonable (abnormal) loss of direct materials, direct labor, and manufacturing expenses

storage fee

design fee Generated from products designed for unspecified users

3 ways to do it

Direct materials Direct labor Manufacturing overhead

Three things are certain: direct materials, processing fees, transportation and miscellaneous fees

The two items are not necessarily:

Borrow: raw materials (according to the agreement, if it is unfair, it will be regarded as fair) Taxes payable - VAT payable (input tax) Credit: paid-in capital (share) Capital reserve-capital premium (crowding)

Direct labor and other indirect costs of labor personnel are included in the inventory-indirect expenses-inventory cost.

replacement cost

Assuming that the first to be put into storage is shipped first, price↑-shipping cost↓-profit for the current period↑-inventory inventory value↑

The unit price is recalculated for each purchase, which requires a lot of work and is not suitable for companies with frequent receipts and shipments.

It is usually impossible to provide the unit price and amount of issued and balance inventory from the account, which is not conducive to the daily management and control of inventory costs.

Cost flow is consistent with physical flow, Applicable to inventories that generally cannot be replaced, inventories purchased or manufactured specifically for specific projects, and services provided, such as jewelry, paintings and other valuable items

Borrow: Main business costs Inventory impairment Credit: Inventory goods

Borrow: other business costs Inventory impairment Credit: raw materials

Production time

Lending/sold with product - not priced separately

Rent/sell with product - priced separately

No accounting processing

Borrow: Asset impairment provision Credit: Inventory devaluation provision

Conclusive evidence of inventory costs:

Conclusive evidence of net realizable value:

Materials that need to be processed, etc.

Products or materials used directly for sale

Inventory selling price fluctuations between the balance sheet date and the approval date

General principle: If there is a contract, the contract will be followed; if there is no contract, the general market price will be used.

For materials that have not produced the subject matter of the contract but are held specifically for the production of the subject matter, their net realizable value should also be based on the contract price of the finished product.

The quantity agreed in the contract → the price agreed in the contract is used as the basis for calculating the net realizable value

Exceeding the contract quantity → the general sales price of the finished product/commodity

The price agreed in the contract is used as the basis for calculating the net realizable value

If the contract is a loss-making contract, estimated liabilities should be recognized in accordance with regulations

The net realizable value should be determined separately and compared with its cost, and the provision or reversal of inventory depreciation provisions should be determined separately and should not be offset against each other.

general sales price

Usually based on material market price

There is a contract agreement. According to the contract agreement

The material's "cost VS net realizable value" which is lower?

Depends on whether the finished product has depreciated or not: "Cost VS Net Realizable Value"

1. Single item accrual method (△This is usually the test)

2. Classified accrual method

3. Overall calculation method

Need to accrue In short, "net realizable value < cost" "still has value"

Provision in full In short, "worthless" and "waste"

Principle: On the balance sheet date, inventory cost VS net realizable value, calculate the accrued impairment allowance VS the accrued impairment allowance

Additional provision (accrued > already accrued)

Reversal (accrued < already accrued)