Small Business Practical Accounting - Processing Manufacturing Industry Edition

Author: Yang Chengxian
Publisher:
Publish Date: 2006-09-01
Features:
1. Characteristics of Accounting in Processing and Manufacturing Industries
The capital operation process of processing and manufacturing enterprises is as follows: raising funds, operating funds for production, recovering funds through product sales, calculating operating results, and allowing part of the funds to exit the enterprise while some funds re-enter the enterprise. The accounting of processing and manufacturing enterprises involves corresponding accounting treatments for the process of capital movement in these enterprises.
(1) Stage of Fundraising. Processing and manufacturing enterprises obtain registered capital through investors' investments, purchase and construct necessary fixed assets to ensure the smooth progress of normal business operations. At this stage, accounting mainly records the monetary funds, physical assets (such as inventory, fixed assets, intangible assets, etc.), funds borrowed from creditors, and temporarily occupied funds in production that have not yet been settled.
(2) Stage of Raw Material Purchasing. Processing and manufacturing enterprises purchase raw materials needed for production and pay various procurement expenses, forming reserve funds for industrial enterprises. At this stage, accounting mainly records the cost of externally purchased raw materials and the valuation of issued raw materials, as well as the cost of inventory under entrusted processing.
(3) Stage of Product Production. Processing and manufacturing enterprises input reserve raw materials into production, converting reserve funds into production funds, while transferring the depreciation value of labor tools and paying labor costs and other expenses, which constitute the total production cost of the products. Through processing and manufacturing, qualified finished products are produced, converting production funds into finished product funds. At this stage, accounting must adopt appropriate cost calculation methods based on the characteristics of different product production to accurately account for production costs.
(4) Stage of Product Sales. Processing and manufacturing enterprises sell finished products as goods to recover monetary funds. At this stage, accounting mainly records the sales revenue obtained from selling products (goods) in different ways, as well as taxes, discounts, allowances, sales product costs, and sales returns. P11