Unit Four The Calculation of Cost and Expense

1. Unit Four The Calculation of Cost and Expense

2. Learning goals 1. Getting to know the component of cost 2. Mastering the calculation method of the cost and expense 3. Understanding the difference between the characteristic of the cost and expense

3. Case A Hua and A Ming were busy with preparation for their business for a period, and finally, all the facilities and raw materials were ready, so they were going to open the shop. How happy they were! “We just wonder how much we can make a day. If an ice-cream machine can produce 100 ice-creams a day, and RMB 15 for each, we can make RMB 1，500 per day and RMB 30，000 a month if we sell 20 days. Wow, wonderful, haha!” A Hua was laughing while thinking. “RMB 30，000? How imaginative you are! We should work out the cost and expense first. No pains, no gains.”A Ming said. “Oh I see.” A Hua stopped laughing. “How much is the cost of making one ice-cream?” A Hua counted with a pen.

4. Case

5. Case “Then, how is the account recorded?” asked A Hua. A Ming: The accounting entry is as follows. Dr.: Operating cost 8 Cr.: Material 8 A Hua: Are there any other costs besides this? A Ming: Sure. We have to pay for the electricity, water supplies, salary for employees and the rent.

6. 理论知识 餐饮制品的成本，主要是指餐饮制品在制作过程中所耗费的材料成本，即组成餐饮制品的主料、配料、调料三大类。 制作冰激凌业务涉及的原始凭证主要有材料领用单。会计人员要根据审核无误的原始凭证编制转账凭证，分别登记“主营业务成本”“材料”账户。

7. Case Let’s see the depreciation of the facilities. All the charge of the facilities is to be compensated in the form of depreciation. A Hua: We have two ice-cream machines and a freezer. How much is the depreciation cost? A Ming: The salesperson told me the service life of these facilities is generally 5 years. Therefore, the depreciation should be calculated as follows: The depreciation of the ice-cream machine is: 30,000×2÷5÷12=1,000 yuan / month The depreciation of the freezer is： 2,400÷5÷12=40 yuan/month The entry should be: Dr.: Operating expense 1,040 Cr.: Accumulative depreciation

8. 理论知识 折旧，是指在固定资产使用寿命内，按照确定的方法对应计折旧额进行系统分摊。 应计折旧额，是指应当计提折旧的固定资产的原价扣除其预计净残值后的金额。 一般采用平均年限法： 年折旧费=设备原值/使用年限 月折旧费=年折旧费/12 在计提折旧费用的年限结束后，如果机械设备还能使用，那么其折旧费用已为零，相应地利润会随之增加。计提折旧业务相关的原始凭证为固定资产折旧计算分配表，会计人员要根据审核无误的原始凭证编制转账凭证，分别登记“销售费用”“累计折旧”账户。

9. A Hua: How can we calculate the salary for the other two employees in the shop? A Ming: If RMB 1，000 for each one, the record of the accounting should be: Dr.: Operating expense2，000 Cr.: Wages payable2，000

10. 理论知识 销售费用是指企业在销售产品、自制半成品和提供劳务等过程中发生的费用，包括由企业负担的包装费、运输费、广告费、装卸费、保险费、委托代销手续费、展览费、租赁费(不含融资租赁费)和销售服务费、销售部门人员工资、职工福利费、差旅费、办公费、折旧费、修理费、物料消耗、低值易耗品摊销以及其他经费等。

11. A Hua: Should our wages be recorded in the operating expense? A Ming: Not exactly. Ours are recorded in the administrative expenses since we are the owners of the shop. Administrative expenses refer to the expenses which occur in the management and business operation. The entry should be: Dr.: Administrative expenses Cr.: Wages payable

12. 理论知识 管理费用是企业管理和组织生产经营活动所发生的各项费用。 核算工资业务的原始凭证为工资结算汇总表。会计人员要根据审核无误的原始凭证编制转账凭证，分别登记“管理费用”“销售费用”“应付职工薪酬”账户。

13. A Ming: We should also calculate the interest of the RMB 10，000 with annual interest rate of 9% which we borrowed for two years from the bank. Interest=10，000×9%÷12=75 yuan/month The entry should be: Dr.: Finance charge 75 Cr.: Long-term debt 75 A Hua: Any other costs we haven’t included? A Ming: We have the electricity and water supplies charges and the rent that needs to be recorded in administrative expenses. The advertising expense is recorded in the operation expense.

14. 理论知识 餐饮服务业费用按照经济业务内容分为销售费用、管理费用和财务费用。

15. A Hua: Oh, I see. I didn’t expect we have to record so many. It’s really troublesome. A Ming: We still have a long way to go. A Hua: Only in this way can we make the investment decision correctly and create the value for the company, to have our dreams come true.

16. Accounting Terms Accumulative Depreciation 主营业务成本 Financial Charge 累计折旧 Operating Revenue 销售费用 Operating Expenses 财务费用 Administrative Expenses 管理费用

17. Listen to the tape and fill in the following blanks A Ming: Don’t forget that should be calculated every month. A Hua: Why? A Ming: Because we have to consider of in the business operation, which is the price we have to pay. The wearing and tearing must be calculated through . A Hua: Oh, I see. This way can be helpful to get the real . A Ming: Besides, all , such as from the loan and of goods sold, in every month have to be calculated and checked carefully. the depreciation the wearing and tearing the facilities the accumulative depreciation profits costs and expenses the interest the cost

18. Gap filling 1. Catering service expense can be divided into , , and based on various services. 2. Salary for salesperson is recorded under .

19. practice 1. A catering company bought an equipment last month with the price of RMB 150,000. The expected service life is 5 years. The depreciation is calculated in this month. 2. The interest of RMB 2,000 in this month is calculated. 3. Suppose the materials an ice-cream company used in a month include the ice-cream powder with RMB 540, seasoning of RMB 200, the salary for employees of RMB 6,000 per month, charge for electricity and water of RMB 1,000, rent of RMB 5,000 and depreciation of the equipment of RMB 500. Write down the concerned accounts.