What Is a Byproduct?
By-products are non-main products that are produced by the company while producing the main products, from the same raw materials, through the same production process or by further processing using the waste materials in production. For example, in the process of soap production in soap factories, a kind of glycerin is produced and processed; the flour processing plant uses bran to make feed. Although the by-product is produced at the same time as the main product, its value is much smaller than that of the main product. Therefore, in terms of cost calculation, the cost of the by-product can be calculated at a fixed price, and then deducted from the total production cost, and the rest is mainly Product Cost. [1]
- [fù chn pn]
The distinction between main and by-products is not absolute and can even be transformed into each other.
The original by-products may rise from the by-products to the main products due to the increased use of new products. For example, coke and gas depend on the production goals of the enterprise. Enterprises that mainly produce gas, gas as the main product and coke as a by-product; and enterprises that mainly produce coke, and vice versa.
By-products are secondary products and have little impact on the company's income and profits. Usually, the deducted price of by-products is usually determined from
You can deduct taxes and
1. A farm tool factory calculates the product cost according to the classification method. The three types of products produced by the plant are small iron farm implements.
Its raw materials and production processes are similar. In May, 4,000 A products, 1,500 B products, and 2400 C products were produced; at the end of the month, 160 A products and 240 B products were in production.
2. This month's production costs for this type of product are: direct material costs 21,030 yuan, direct labor costs 7,428 yuan, and manufacturing costs 8,240 yuan; the cost of products in progress at the beginning of the month: direct material costs 720 yuan, direct labor costs 240 yuan, and manufacturing costs 280 yuan.
3. The distribution method of various product costs is: raw material costs are allocated in accordance with the predetermined consumption factor ratio; other costs are allocated in accordance with the man-hour coefficient. The material consumption coefficient is calculated and determined according to the material consumption quota of the product, and the working hour coefficient is calculated and determined according to the product's working hour quota. The material consumption quota is 1.2 kg for product A, 1.8 kg for product B, 0.24 kg for product C, and product A is the standard product. The fixed working hours are: 0.8 hours for product A, 1.6 hours for product B, and 0.4 hours for product C. All products are put in one time, and the end-of-month product completion rate is 50%. Requirements: (1) Compile the coefficient calculation table to determine the material consumption coefficient and working time coefficient for the three products A, B, and C.
(2) Prepare a standard product output calculation table to calculate the standard product output (that is, the total coefficient) of finished products and in-process products at the end of the month.
(3) Compile a category cost calculation sheet to calculate the category finished product cost and the month-end work in process cost.
(4) Compile a product cost calculation table to calculate the cost of finished products A, B, and C.
The conversion table for each product factor is prepared as follows:
(1) Coefficient calculation table
Product name Raw material consumption quota (kg) Consumption factor Man-hour consumption quota (factor) Man-hour coefficient
A | 1.2 | 1 | 0.8 | 1 |
B | 1.8 | 1.5 | 1.6 | 2 |
C | 0.24 | 0.2 | 0.4 | 0.5 |
(2) Standard product output calculation table
Project finished product output (put) Raw material processing cost Consumption factor Finished product converted to standard output Actual product quantity In product converted to standard output Man-hour coefficient Finished product converted to standard output In product converted contract When output is in product converted to standard output
A product | 4000 | 1 | 4000 | 160 | 160 | 1 | 4000 | 80 | 80 |
Product B | 1500 | 1.5 | 2250 | 240 | 360 | 2 | 3000 | 120 | 240 |
C products | 2400 | 0.2 | 480 | | | 0.5 | 1200 | | |
total | | | 6730 | | 520 | | 8200 | | 320 |
Standard product output (total coefficient) | 7250 | 8250 | | | | | | | |
(3) Category product cost calculation sheet
Product category: Small iron farm implements Unit: Yuan
Total direct manufacturing costs of direct materials
Expenses incurred this month | 21030 | 7428 | 8240 | 36698 |
Total cost | 21750 | 7668 | 8520 | 37938 |
Production of finished products | 6730 | 8200 | 8200 | |
Work in Process Standard Product Yield | 520 | 320 | 320 | |
Total production of standard products | 7250 | 8520 | 8520 | |
Cost allocation rate | 3 | 0.9 | 1 | |
Cost of finished products | 20190 | 7380 | 8200 | 35770 |
Cost of work in progress at the end of the month | 1560 | 288 | 320 | 2168 |
(4) Cost calculation table for various finished products in the category
Project output Raw material standard product output
(Total Consumable Coefficient) Output of Standard Material Man-hour Standard Product
(Total working hours coefficient) Total direct labor costs
Cost allocation rate | | | 3 | | 0.9 | 1 | |
A product | 4000 | 4000 | 12000 | 4000 | 3600 | 4000 | 19600 |
Product B | 1500 | 2250 | 6750 | 3000 | 2700 | 3000 | 12450 |
C products | 2400 | 480 | 1440 | 1200 | 1080 | 1200 | 3720 |
total | | 6730 | 20190 | 8200 | 7380 | 8200 | 35770 |
