Cultivation Accounting

Batch and Cycle Costing

Direct labor, nutrients, growing media, and cultivation utilities are accumulated by batch and released to cost of goods sold when finished product is sold. Costing by batch also produces the yield data operators need to compare rooms and cultivars.

• Cost per harvested gram by room, strain, and cycle
• Capitalized versus period cost classification
• Waste and destruction recorded with monitoring-system references

Inventory and Cost Accounting

Work in process at a cultivation site is real and material. Valuing immature plants, vegetative stock, drying material, and finished flower separately makes the balance sheet meaningful rather than a single lump.

Seed-to-Sale Reconciliation

Plant tags, harvest weights, and package identifiers in the statewide monitoring system should reconcile to the quantities carried in the accounting records. Michigan licensees are expected to keep monitoring records current, and periodic reconciliation keeps the financial records consistent with what has been reported.

Capital Assets and Facility Costs

Lighting, HVAC, benching, and building improvements have different useful lives and different treatment. A maintained fixed asset register with placed-in-service dates supports depreciation and future financing conversations.