1. Determine the cost calculation method. Before cost calculation, it is necessary to determine which cost calculation method to adopt. Commonly used methods include variety method, batch method and step-by-step method. This should be selected according to the characteristics of production process and production organization and the requirements of cost management.

2. Set up related cost accounting accounts. In order to calculate the cost of products, it is necessary to set up a special account, namely "production cost" account. The borrower collects all kinds of expenses incurred in producing products, and the lender reflects the manufacturing cost of finished products.

For a cost calculation object, there are only two kinds of expenses: ① direct expenses. (2) Indirect costs, that is, costs of the same sex that are not directly used to produce this service. If an enterprise only produces one product, there is no difference between direct expenses and indirect expenses, and both should be directly included in the product cost. However, enterprises generally produce a variety of products. In this way, the direct cost can still be directly included in the product cost, while the indirect cost must be collected first and then allocated to different cost calculation objects. In this way, it is necessary to set up a separate account, that is, the "overhead" account. The function of the "Manufacturing Expense" account is to collect all kinds of indirect expenses and then allocate them to the cost calculation object reasonably.

If there are many cases of waste products and shutdown, it is necessary to collect relevant information about waste products and shutdown losses, set up special accounts for waste products and shutdown losses, and collect these losses into the debits of the accounts for waste products and shutdown losses, and then handle them appropriately in their credits and transfer them out: those that are normal losses should generally be allocated to the product cost; Otherwise, it should be transferred to management expenses or non-operating expenses.

According to the requirements of accrual basis, the expenses incurred in production are not necessarily included in the production cost, and the expenditure period may be inconsistent with the cost calculation period. There are two situations after the expenditure occurs: ① the expenses incurred in production give full play to the benefits in the current period, and the benefits are not deferred to the next period. In this case, the cost should be directly charged to the "production cost" or "manufacturing cost" account. ② The expenses incurred in this period should not be borne by this period. There are two situations: ① expenditure first, and then included in the cost. In this case, the subject of "prepaid expenses" should be set up, which will be debited when the expenses are paid and credited when the expenses are amortized. (2) first included in the cost, after spending. In this case, the "accrued expenses" account should be set. When the current cost is included, the relevant cost account should be debited, and the "accrued expenses" account should be credited, and then the "accrued expenses" account should be debited after payment.

3. Classification of accounting expenses and purposes. The process of cost calculation is a process of cost collection and distribution, or conversely, cost accounting is ultimately cost accounting. Cost calculation is a multi-step process of dealing with expenses. To do a good job in cost accounting, the first step is to accurately reflect the total expenditure and expenditure types. This step should solve two problems: first, what expenses does the enterprise have in the current period and what expenses it has spent. This is the basis of cost calculation. If how many raw materials are consumed, the first-in first-out method and the last-in first-out method should be used for proper measurement; If the value of equipment is lost due to its effectiveness, it should be depreciated in an appropriate way. Second, what role does the cost play? In the process of cost calculation, we should not only reflect some expenses, but also further clarify what role the expenses have played. Who does it work for? There are three functions after expenses are incurred: ① After expenses are incurred, they do not play a role in the current period and should be postponed to the later period. If the rent is paid in advance, it should be included in the prepaid expenses. (2) Expenditure occurs in the current period, and its effectiveness occurs in the previous period. If all the rent of the previous year is paid at the beginning of the year, it cannot be regarded as the current expense, but should be credited to the accrued expense account. (3) Most of the expenses are in the current period, and the utility is also in the current period. These expenses should not only be included in the current cost, but also be classified according to their specific uses. No matter what the object of cost calculation is, generally speaking, the following cost items need to be paid; In other words, after expenses are incurred, they only play the following roles: First, they consume all related materials, which constitute the entity of the product, and are called direct material expenses; The second is to consume all related labor costs, and the labor of these production workers is directly used for the manufacture of products, which is called direct labor costs; The third is to consume all kinds of materials, labor and other expenses, which are not directly used for the production of products, but only play an auxiliary role in the production process or provide necessary production conditions. This kind of cost is called manufacturing cost.

In order to reflect the occurrence of expenses and their classification by purpose, it is necessary to make accounting entries, namely:

Debit: related cost account.

Loans: related assets and liabilities accounts.

In this accounting entry, the relevant assets and liabilities of the lender reflect the specific situation of expenses. These accounts are cash, raw materials, accumulated depreciation, wages payable, welfare payable and other accounts, reflecting what expenses the enterprise has spent. The borrower's related cost accounts include prepaid expenses, accrued expenses, production costs, manufacturing expenses, etc. , reflecting what role these expenses have played. Among them, the production cost is the main account of cost calculation, and all expenses will be collected into the production cost account in the end. The expenses recorded in the production cost account should be further classified according to the purpose, generally divided into direct materials, labor costs and manufacturing costs.

4. Allocation of auxiliary production expenses. There are two detailed accounts under the "production cost" general ledger: one is basic production, which is used to calculate the production cost of products; The second is auxiliary production, which is used to calculate the cost of related production departments that serve the production of products. Auxiliary production is also a kind of production activity, which provides necessary products and services for basic production activities, but it also consumes various production costs and calculates product costs. The calculation of auxiliary production cost needs to set up a subsidiary account of "auxiliary production". The borrower collects all kinds of expenses incurred, and the lender calculates the cost of finished products completed by the auxiliary production workshop and transfers it to the basic production subsidiary account. This account generally has no balance.

5. Distribution of manufacturing costs. Product cost consists of direct materials, direct labor and manufacturing expenses, in which direct materials and direct labor are direct costs, which are directly recorded in the "production cost" account, while manufacturing expenses are indirect costs, which are not directly recorded in the "production cost" account, but are first collected in the "production cost" account and then distributed to the "production cost" account.

6. Calculation of finished product cost. Through the above steps, all the production costs incurred in this period have been collected to the debit of the "production cost" account. If the enterprise is not producing, the cost of finished products is the opening balance of the production cost account plus all the production costs incurred in the current period. However, general enterprises exist in products and finished products at the same time, so it is necessary to allocate production costs between finished products and finished products, and calculate the cost of products and finished products at the same time.

There is the following relationship between the relevant data of the "production cost" account:

Opening balance+all production costs incurred in the current period = cost in process at the end of the period+cost of finished products.

Cost of finished products = opening balance+all production costs incurred in the current period-cost of products in progress at the end of the period.

In other words, the calculation of finished product cost is to allocate the total cost between products and finished products at the end of the period. Generally, the equivalent yield method or quota method is used for distribution.

After calculating the cost of finished products, the total cost of finished products should be divided by the total output to get the unit cost, so the calculation of product cost is all over.