Actual Production Costing at Month End
Collect material, labour and overhead, then allocate WIP and finished-goods cost.
Learning objective
Run costing, variance analysis and posting in a stable sequence.
03
Steps
01Confirm material issue/return, completion, labour reporting and order status.
02Collect direct material, labour and overhead; validate cost centres.
03Maintain allocation drivers, equivalent units and WIP rules.
04Run costing and investigate zero/negative cost, large movement and unallocated expense.
05Post finished-goods and COGS cost, then reconcile inventory and GL.
- 01
Confirm material issue/return, completion, labour reporting and order status.
- 02
Collect direct material, labour and overhead; validate cost centres.
- 03
Maintain allocation drivers, equivalent units and WIP rules.
- 04
Run costing and investigate zero/negative cost, large movement and unallocated expense.
- 05
Post finished-goods and COGS cost, then reconcile inventory and GL.
04
Implementation notes
- Cost errors usually originate in business data, not the calculation button.
- Run a preview before final calculation.
- Retain the cost version and exception notes.