Asslamualaikum wr.

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MECHANISM OF RECORDING RAW

MATERIAL PRODUCTION COST

By

NASRA
XIIAKUNTANSI A
 Background

a special activity in a manufacturing company is to

process raw material into finished goods this
activity is called production actcivities. The
problem faced by management related to the
material that is the delay in the availability of
materials will affect the smoothness of production
activities, while the excessive inventory means a
waste of working capital.
General purpose
The general purpose of this paper know and
understand the understanding and how the
machanism of recording the cost of
production of raw materials.
Special purpose
a. To understand the basic cost of raw
material
b. The acquisition and use of raw materials
c. The cost of raw material
d. Ditribution and use of raw material
e. Productionand calculation of raw materal
cost
f. Special problems related to raw materials
1. User benefits
The authors hope that this paper can be a means,
guidance, and as a meterial informatiofor the
user.

2. Benefits of the author

In order to add insight, experience, and learning about
machanism of recording the cost of production of raw
materials.

3. Benefits readers
The authors expect this paper can be used as on
source of information for students about the
machanism of recording the cost of production of
raw materials.
mechanism is derived from the greek work mechane which
means instrument, mechine load device, device equipment, to
make something and from mechos work that has meaning
means and how to run something.
Recording is the activity of documentinng the writing or the
process of entering data into the media of data recording
sistem.
Production cost is costs used in the production process
include the cost of raw materials, direct labor cost and factory
overhead cost are ggreater than the amount of other cost.
Raw Material

Raw materials is materials that form an integral part of

the finished product and are the basic elements that are
processed, in the production process so as to produce a
finished product.

Cost of raw meterials

1. Discount purchase
2. Charges transport purchase cost
3. Acquisition cost charges
Ecquisition and use of raw materials
Cover :
1. For each product or product variation, the engineer determines
the routing for product details.
2. Production budget
3. Purchase requisition
4. Purchase order
5. Receiving report
6. Proof of raw material demand
7. Raw material note card

Raw material purchase form

Came from:
1. Proof of purchase request
2. Purchase order signed by buyer agent or
authorized party
Purchase of raw materials
Usually done by the purchasing
departemnt

Acceptance of raw materials

This report provides a space for the inspection
departement to write its approval of the item as
well as the amount rejected and the reasons for
the refusal.
Expenditure and calculation of raw material cost
1. Proof of raw material demand
2. Electronik data processing for proof of receipt of
raw materials
3. List of mayerials used

Method of recording the cost raw materials

1. Perpetual inventory method, this is method each raw materials
mutation is recorded in the inventory in the inventory card.
2. Fisycal inventory method, this is method only additional raw
material inventory from buyes is recorded.
Method of calculating raw material cost
Last In First Out(LIFO)
This is method determins the basic cost of raw
materials with the assumption that the cost of each of
the last raw material is included in the werwhouse
inventory, used to determine the cost of raw materials
first used in the production.

Special problems related to raw materials

1. Residual materials
2. Default products
3. Faulted products
Wassalamualaikum
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