Transferring manufacturing costs to production costs, the cost of production in the completed product A and product B to allocate between the cost of production belonging to the product A transferred to inventory, belonging to the product B still remain in the cost of production accounts do not have to deal with and carry forward.

Specific entries are:

Borrow: production costs

Credit: manufacturing costs

Borrow: inventory - Product A (the amount of its direct materials, the sum of the share of the manufacturing costs and labor costs)

Credit: production costs

"Accounting entries" is referred to as "entries". In accordance with the requirements of double-entry bookkeeping, each economic operation to account name, direction and amount of the account to reflect the corresponding relationship between the record. Under the debit and credit method of accounting, it is a record that shows the name of the accounts to be debited and credited and the amount of each economic operation. An accounting entry is a concise record that identifies and lists the names and amounts of the accounts to be debited and credited in accordance with the requirements of the rules of bookkeeping at the time of the economic operation.

Types

Based on the number of accounts involved in an accounting entry, it can be categorized into simple and compound entries.

Simple entries are accounting entries that involve only two accounts, i.e., one debit and one credit;

Compound entries are accounting entries that involve more than two (excluding two) accounts

Preparation Methods

Beginners can follow the following steps in the preparation of accounting entries:

First: the accounts involved, analyze which accounts are involved in the economic business involves changes in which accounts;

Second: the nature of the accounts, analyze the nature of these accounts involved, that is, they each belong to what, the accounting elements, located on the left or right side of the accounting equation;

Third: the increase or decrease in the change of the situation, analyze to determine whether these accounts are increased or decreased; increase or decrease in the amount of how much;

Fourth: the direction of the entries. Depending on the nature of the account and its increase or decrease in change, determine the debit or credit side of the account, respectively;

Finally, prepare complete accounting entries according to the format requirements of accounting entries.

Use

Accounting entries in practice, is realized by filling out the bookkeeping vouchers, it is to ensure that the accounting records are correct and reliable important links. Accounting, regardless of what kind of economic operations, need to register accounts before, in accordance with the rules of bookkeeping, through the filling of bookkeeping vouchers to determine the economic operations of the accounting points, in order to correctly account for the record and check afterwards. Accounting entries are simple and compound entries.