Finance And Accounting: Accounting For Other Inventories

Accounting for other inventories

1. Accounting for processing materials.

(1) delegate the contents of processed materials

Processing materials refer to materials, commodities and other materials processed by enterprises.

The cost of processing materials by a company entrusted to an outside unit includes:

1. the actual cost of issuing processed materials.

2. the cost of actual material consumed in processing.

3. the processing cost and the miscellaneous expenses payable.

4. the tax payable includes the consumption tax which is entrusted to the processing materials, which refers to the processing materials that belong to the taxable scope of consumption tax.

(1) if the processing materials that need to pay the consumption tax are directly used for sale after processing materials are recovered, the consumption tax collected by the trustee shall be included in the cost of processing materials.

(2) if the recovered processing materials are used to continue to produce taxable consumer goods, the consumption tax collected by the trustee shall be credited to the debit of the "payable tax payable to consumption tax" subject to the consumption tax payable on the sale of processed consumer products according to the regulations.

[examples 14? Multiple choice questions]

The tax paid by the general taxpayer for entrusting the processed materials may be granted in accordance with the provisions of the tax law.

A. pays the consumption tax and the processed materials are used directly for the continuous production of taxable consumer goods.

B. pays the consumption tax, and the processed materials are used for external sales directly after being recovered.

C. pays VAT and obtains VAT invoice.

D. pays VAT and obtains general sales invoices.

E. payment by commission processing contract

[answer] AC

[analysis] payment of consumption tax and direct processing of goods after recovery.

The consumption tax should be included in the cost of reclaiming the processed materials, so the option B is not correct; obtaining the general invoice, the VAT can not be deducted, so the option D is not correct; the stamp duty payable according to the commissioned processing contract should be included in the management fee, there is no deduction problem, and the option E is incorrect.

(two)

Accounting

1. materials allocated to external units are processed at actual cost.

Borrowing: processing materials.

Loan: raw materials

Stock items, etc.

2. payment of processing expenses and miscellaneous expenses payable.

Borrowing: processing materials.

Tax payable - value added tax (input tax)

Loans: bank deposits, etc.

3. if the processed materials that need to pay the consumption tax are directly used for sale, the consumption tax collected by the trustee shall be included in the cost of the commissioned processing materials.

Borrowing: processing materials.

Credit: accounts payable

Bank deposits, etc.

4. if the material that is used for the continuous production of taxable consumer goods is recovered, the consumption tax collected on behalf of the trustee shall be deducted according to the regulations.

Borrowing: tax payable - consumption tax payable.

Credit: accounts payable

Bank deposits, etc.

5. receiving materials and surplus materials that are processed and completed and checked into warehouses, according to actual cost

Borrow: raw material

Stock items, etc.

Loan: commissioned processing materials