Accounting entries when you’re dealing with producing your goods are something that needs to be similar throughout.  You have to have specific and pretty detailed accounting laid out – accounts, procedures and controls for measurement (i.e. to measure your own cost per unit). 

Specific expenses are treated similar, they’re accounted for similar and constantly on same accounts. Materials consumption is measured the same each cycle you’re producing; data should be kept in regular intervals and in comparable formats etc. Accounting when producing means that your accounting needs to be strict. It’s not just buying and reselling but measuring the expense for your own produced unit and as you know, it’s what measures the selling price and hence your profits at the end of the day.

As such, it’s one thing doing those basic entries that relate to buying and paying for the materials, but it’s also keeping track of supplier bonuses, credit invoices and those that are related to the production itself. Once you get your routines worked out, get your producers written down and get used to them in practice, accounting for a production company isn’t going to be that difficult.