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Issue:
The calculation method and determination basis of the standard cost, the aggregation method of the actual cost, the difference between the actual cost and the standard cost, the standard process of the SAP system, the difference between the implementation of the first declaration and this declaration, the carry-over time of the actual cost and the standard cost difference, whether the current carryover is completed, whether there are still cases where the work order has not been closed normally, and the difference has not been carried forward for a long time;
Reply:
1. The company's standard cost
2. The way to aggregate the actual cost of the company
3. The difference between the actual cost and the standard cost
The company's SAP system accounts for the difference between actual costs and standard costs by setting up spread accounts, mainly to manage and assess the deviation of direct materials, direct labor, and manufacturing expenses.
4. Standard process of SAP system
The company's SAP system adopts standard cost pricing when the product is stored and shipped out, wherein in the warehousing link, the difference between the actual cost and the standard cost is carried forward to the warehouse at the end of the month after the production work order is closed, that is, the standard cost of the inventory goods in the warehouse is adjusted to the actual cost, so that the price difference is stored as part of the actual cost; In the outbound link, the price difference is carried forward as part of the actual cost to participate in the subsequent inventory of goods and the outbound cost calculated by the "month-end weighted average method" of the goods issued.
Suppose the production order plans to produce 10 products, the standard cost is 10, where the direct material cost is 9, the direct labor cost is 0.5, and the manufacturing expense is 0.5, but the actual cost of each product in actual production is 11.
The standard process for cost aggregation and carry-over in the SAP system is as follows:
5. Cases of some (proposed) listed companies on cost aggregation and carryover
Regarding the situation of cost aggregation and carryover, some cases of (proposed) listed companies are as follows:
In summary, the company's management and implementation in cost aggregation and carry-over are not materially different from some (proposed) listed companies, which is in line with industry practice.
6. The variance between the company's actual cost and the standard cost
In the actual execution process, the company may incur actual costs greater than standard costs, or actual costs may be less than standard costs. At the end of each period of the reporting period, the standard cost and actual cost variance of the company's inventory accounts (including inventory goods, shipped goods, and in-process products) are as follows:
Note: The positive balance means that the actual cost of the company is greater than the standard cost, and the negative balance means that the actual cost of the company is less than the standard cost
In summary, during the reporting period, the difference between the actual cost of the company's inventory account and the standard cost accounted for a small proportion of the closing balance of the inventory and operating costs, and did not have a significant impact. The calculation method and determination basis of the company's standard cost are reasonable, the aggregation method of actual cost is correct, the accounting treatment of the difference between actual cost and standard cost is accurate, and the cost carryover is complete.