Oil & Gas
Refinery Processing Cost — Operating Expense
Recording the monthly refinery operating costs: energy, catalysts, maintenance, and labour.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Refinery Operating Expense (LOE) | Expense (+) | 12,000,000.00 | - |
| Cash / Accounts Payable | Asset/Liability (-) | - | 12,000,000.00 |
💡 Accountant's Note
Refinery operating costs are production expenses — they go through WIP inventory and are ultimately part of the cost of finished products. Energy (catalytic cracking, distillation) is typically the largest single cost.
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