Kunpeng Project
Income tax final settlement: Production cost account adjustment strategy**.
In the accounting of enterprises, production expenses are a large accounting account, mainly including raw materials in production, direct labor, manufacturing costs, etc., which will eventually be transferred to the inventory account according to the specified ratio after the completion of the finished product, so as to reflect the cost of the product and the value of the inventory. When the enterprise income tax is liquidated, the adjustment of the product cost account is mainly based on its determination of the relevant items on the inventory or balance sheet.
1.Manufacturing Expenses Transferred to Inventory: If the manufacturing process expenses are transferred to the inventory account, it means that the product has had an impact on the company's accounting earnings and profits, and adjustments have been made to its inventory on the balance sheet. In this case, the adjustment of production costs is carried out in the process of inventory valuation, cost accounting, etc., and in the case of enterprise income tax, the tax adjustment is carried out according to the real cost of inventory to ensure the correctness of the tax base.
2.Unfinished semi-finished product expenses: If the cost of a batch of products has not been completed and has not been transferred to the inventory account, the cost is still a manufacturing expense, which is not included in the accounting income or loss for the time being, and will not have any impact on tax issues such as pre-tax deductions. Since the product has not yet had a significant impact on the company's tax finances, there is no need for tax adjustment at the time of corporate income tax settlement.
In short, in the liquidation of enterprise income tax, the adjustment of the "production cost" account depends to a large extent on the changes in the account balance and the real effect on the tax finance of the enterprise. Rational accounting treatment of an enterprise's business activities is of great significance to the enterprise paying taxes in accordance with the law and strengthening the financial management of the enterprise.