Accounting for Production Costs
What are production costs?
A monetary estimate of resources consumed in production and sales of goods and services.
Name the three types of reporting by accounting type.
Statistical, operational-technical, and accounting.
What qualifies as finished products?
Fully processed, accepted to warehouse, quality-certified products.
What is an audit according to Belarusian law?
Independent assessment of financial statements to express an opinion on reliability.
Which accounts are used to record production costs?
Accounts 20, 23, 25, 26, and 28.
What does the annual report include?
Balance sheet, profit and loss statement, and others as per the Law on Accounting.
Which account is used to record finished products?
Account 43 "Finished Products".
Name two core principles of auditing.
Independence and confidentiality.
What is included in general production costs?
Shop management salaries, depreciation, building maintenance, repairs, etc.
Name three key reporting requirements.
Reliability, comparability, timeliness.
Which documents are used when transferring products to the warehouse?
Invoices, acceptance sheets, registry documents.
What are the types of audit by object?
Financial audit, operational audit, compliance audit.
A company used materials worth BYN 5000, paid salaries of BYN 3000, and insurance of BYN 900. Calculate total costs
5000 + 3000 + 900 = BYN 8900
When does the reporting period end, and when is the annual report submitted?
Ends December 31; submitted by April 1 of the following year.
What valuation methods are used for finished products?
Actual cost, standard cost, selling prices, reduced cost.
Name three types of organizations where audit is mandatory.
Banks, insurance companies, Hi-Tech Park residents.
What is the indirect method of material accounting?
Allocation based on standard cost, weight, or quantity of output.
Revenue = BYN 12M, Cost = BYN 8M, Taxes = BYN 1M. Calculate net profit.
12 – 8 – 1 = BYN 3M
100 units produced. Cost per unit = BYN 500, selling price = BYN 750. Calculate total profit.
(750 – 500) × 100 = BYN 25,000
What are three main stages of an audit?
Preparation, evidence collection, forming audit opinion.