Since the rice yield of rice is about 70%, when carrying forward the cost of rice, you can settle the cost of raw materials according to 70% of the quantity (amount) of the amount of rice purchased. The rest of the cost can be fully included in the cost of rice. The monthly production of bran and broken rice can be recorded at the rate of 30% of the amount of rice purchased, and other costs are not counted. At the time of sales settlement, only 30% of the cost of raw material purchase is required.
In terms of accounting treatment, "Material Procurement - Rice" and "Material Procurement - Freight" are debited and "Cash" is credited first. "Commodities in stock — rice", "Commodities in stock — broken rice" and "Commodities in stock — Bran" are then debited, and "Procurement of materials — rice" and "Procurement of materials — freight" are credited. When cash or bank deposits are received, "Cash (Bank Deposit)" is debited and "Income from main business" is credited. When the cost of sales is carried forward, the "cost of principal business" is debited and the "goods in stock" are credited.
It is important to note that the way VAT is treated is critical. The treatment of VAT depends on the amount of rice you purchase**. If you are sourcing your paddy directly from the producer, then you can deduct 13% VAT from the purchase price and the remaining 87% into the cost. If you are purchasing from a general taxpayer, then there is a 17% input tax. The warehousing method depends on your company's choice, and the price difference needs to be included in the "commodity purchase and sale price difference".
The above methods are for reference only, please make appropriate adjustments according to the actual situation of your enterprise and relevant laws and regulations.