13 accounting for calculating manufacturing costs and product prices at ha noi civil electric hydraulic and industrial consultant jsc

MINISTRY OF FINANCE ACADEMY OF FINANCE Student: Đào Thị Hoa Group: CQ55/ 51.04 GRADUATION THESIS TOPIC: Accounting For Calculating Manufacturing Costs And Product Prices At Ha Noi Civil Electric Hydraulic And Industrial Consultant Jsc Major : English for accounting and finance Student code : 17522202010109 Supervisor : Dr Trần Thu Hoài Hanoi – 2021 DECLARATION I hereby undertake that this internship report was written by myself based on the actual results that I researched and collected during the actual internship at the company Thesis: “Accounting of evaluating manufacturing cost and product price at Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC” Hanoi, May 20th 2021 Student Đào Thị Hoa ABSTRACT This study researched the accounting of evaluating manufacturing cost and product price in Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC The paper aims at finding out the achievements and drawbacks in accounting activities in Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC, especially the areas of cost accounting and then suggesting main methods to improve the efficiency of accountant in the company This graduation thesis present the process of accounting activities based the experience directly in the company point out whether it is effective or not From received results, the study argues that student need to Students need to provide optimal solutions to solve arising problems, inadequacies in the company's accounting operations, and improve the company's business in the future ACKNOWLEDGEMENT I would like to express my deep gratitude to all those who have given me the possibility to complete this graduation thesis In preparing this graduation thesis, I have had generous help and advice from my teachers, my colleagues, my family and my friends I would like to express my great thanks to all of them First of all, I would like to express my deepest gratitude to my supervisor, D.r Tran Thu Hoai, lecturer of Academy of Finance, for her guidance and instructions It is whole-heartedly appreciated that your great advice for my study proved monumental towards the success of this study Second, I wish to show my sincere thanks to all my teachers at Academy of Finance, who have provided me with worthy lessons throughout years of study Moreover, I am indebted to the staffs of Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC for their valuable supports during the internship I am extremely thankful and indebted to them for sharing expertise, and sincere and valuable guidance and encouragement extended to me Furthermore, I would like to send my loving thanks to my family whose great love and care in both spirit and health to encourage me to complete the thesis Last but not least, I also place on record, my sense of gratitude to one and all, who directly or indirectly, have lent their hand in this thesis LIST OF ABBREVIATIONS Ac: Account Cr: Credit Dr: Debit JSC: Joint-Stock Company VND: Vietnam Dong VAT: Value-add tax LIST OF FLOWCHARTS AND TABLES List of flowcharts Flowchart 1.1 Accounting entry for direct material costs -24 Flowchart 1.2 Accounting entry for direct labor cost 25 Fowchart 1.3 Accounting entry for factory of overhead costs 26 Flowchart 2.1: Board of Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC 34 Flowchart 2.2 Accounting apparatus -36 Flowchart 2.3 Accounting process at the company 39 List of tables Table 2.1 The main fields of activity of the company -33 Table 2.2 The Company’s business result from 2018-2020 -38 Table 2.3 Insurrance rate apply following to insurrance law -43 TABLE OF CONTENTS DECLARATION - ABSTRACT ACKNOWLEDGEMENT LIST OF ABBREVIATIONS -6 LIST OF FLOWCHARTS AND TABLES INTRODUCTION 12 RATIONAL OF THE STUDY -12 AIM OF THE STUDY 13 SCOPE OF THE STUDY 13 METHODOLOGY 13 ORGANIZATION OF THE STUDY -14 CHAPTER 1: BASIC THEORIES ABOUT THE ACCOUNTING OF MANUFACTURING COSTS AND PRODUCT PRICING IN COMPANY. -15 1.1 Overview of accounting 15 1.1.1 Definition of accounting 15 1.1.2 Functions and responsibilites of accounting -15 1.1.3 Characteristics of accounting 16 1.2 Accounting for calculating manufacturing costs and product prices at a manufacturing enterprise. 17 1.2.1 Content of manufacturing cost -17 1.2.2 Accounting subjects for calculating maufacturing costs and product price. 20 1.2.3 Methods of accounting for calculating manufacturing costs -21 1.2.4 Accounting process for calculating manufacturing costs -22 1.2.4.1 Accounting process and accounting standards -22 1.2.4.2 Accounting for direct raw material costs -23 1.2.4.3 Accounting for direct labor cost -24 1.2.4.4 Accounting for factory overhead costs -25 1.3 Overview of accounting for product price 27 1.3.1 The definition of product price 27 1.3.2 Characteristices of product price 27 1.3.3 The accounting methods for evaluating product prices -29 1.3.3.1 Relationship between manufacturing cost and product price 29 1.3.3.2 Methods for calculating product prices -29 1.4 Accounting book used to accounting for calculating manufacturing costs and product prices. - 30 CHAPTER 2: THE ACTUAL OF MANUFACTURING COST ACCOUNTING AND PRODUCT PRICING AT HA NOI CIVIL ELECTRIC HYDRAULIC AND INDUSTRIAL CONSULTANT JSC -32 2.1 Overview of Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC -32 2.1.1 General information of Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC 32 2.1.2 Foundation and development of the company 32 2.1.3 Organization of management in Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC. - 34 2.1.3.1 Organization Structure of Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC. - 34 2.1.3.2 Human resource situation at the company 35 2.2 Organization of accounting works in the company 36 2.2.1 Organization of the accounting system -36 2.2.2 Accounting policies applied at the company -37 2.2.3 Accounting process 39 2.2.3.1 Accounting process of direct raw materials costs -39 2.2.3.2 The accounting process for direct labor costs 42 2.2.3.3 The accounting process of overhead 44 2.3 Organization of accounting for calculating product prices at the company. 46 2.3.1 Actual situation of the methods of evaluating product price. 46 2.3.2 Actual situation of product price calculation at the company. -47 2.4 The general assessment for accounting for calculating production cost and product price at Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC. 47 2.4.1 Results and limitations at the operation process of the company 47 2.4.2 General comments on accounting for calculating manufacturing costs and evaluating products prices. 51 2.4.2.1 Advantages of accounting works and evaluating product price at the company 51 2.4.2.2 Disadvantages of accounting works and evaluating product price at the company. - 53 CHAPTER 3: SOLUTIONS TO COMPLETE MANUFACTURING COSTS ACCOUNTING AND EVALUATING PRODUCT PRICES AT HA NOI CIVIL ELECTRIC HYDRAULIC AND INDUSTRIAL CONSULTANT JSC. 55 3.1 Orientations and recommandations for completing accounting for manufacturing costs and product price at Ha Noi Civil Electric Hydraulic And Industrial Consultant JSC - 55 3.1.1 Orientations for the future development at Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC 55 3.1.2 Objectives for the future development at Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC. - 56 3.2 Recommendations to improve efficiency of accounting for calculating production costs and product prices at Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC - 56 3.3 Requirements to ensure solutions are implemented -61 CONCLUSION - 63 REFERENCE - 65 APPENDIX 66 INTRODUCTION RATIONALE OF THE STUDY In the context of a strongly developed market economy, competition not only determines the existence and development of enterprises, stimulates enterprises to improve production and business efficiency, but also affects reputation and position of enterprises producing and supplying domestic products and services Competition helps consumers to satisfy their needs for goods and services with increasingly high quality products, suitable to economic mobility For the national economy, competition is the driving force for equal development of all economic sectors, creating conditions to free up the workforce, improving scientific and technical progress and modernization social production background Therefore, In order to get performance operation and a stabilized position in the market, businesses need to have a financial management system that provides accurate information and make right and timely decisions in the business’ production process In financial management tools, the effective accounting tools is use to check, analyze, evaluate and process information In fact, accounting of the business has reflected the calculation of saving costs, lowering costs, and maximizing profits upon businesses Thus, if the enterprise does not perform well the accounting work, especially manufacturing costs accounting and product price accounting, the business operation on the market is considered a reckless way There is no direction or decision to lead to success in business As a student of the Academy of Finance, and through practical research at Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC, I was exposed as an accountant at this company I realize that the importance of accounting for total manufacturing costs and determining product prices, I researched and selected a topic for my graduation thesis, the topic is “Accounting for calculating manufacturing costs and product prices at Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC” APPENDIX List of accounting books and vouchers The ordering Goods received note Goods delivery note The leger of account 621 The aggregate table of detailed book of Account 621 Detail book of account 621 Detail book of account 622 Detail book of account 627 Products and services price trial account 154 Account trial 154 form: S37-DN Ha Noi Civil Electric Hydraulic (Promulgated according to Circular And Industrial Consultant JSC No.200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance) PRODUCTS AND SERVICES PRICE TRIAL November 2020 Name of products and services: installation of water and electricity lines for apartments Quantity: departments Unit: Dong Items of cost Unit of price Total of price Cost of direct materials 73,000,000 219,000,000 Direct labor costs 8,200,000 24,600,000 General overhead costs 5,300,000 15,900,000 Total 86,500,000 259,500,000 Day 30 Month 11 Year 2021 Bookkeeper (Sign, full name) Chief Accountant (Sign, full name) The ordering: The Socialist Republic of Vietnam Independence-Freedom-Happiness The ordering No: 000093 To: Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC Chanh Nghia Joint Stock Company wishing to order in your company according to the required form The ordering content as following samples: No Items Units Quantity Units price (dong) Total (dong) Plug socket P85 Piece 1,000 65,000 65,000,000 Total: Sixty-five millions dong round Date of delivery: December 20th, 2020 Address: Số 993, Huynh Van Luy street, Phu My, Thu Dau Mot, Binh Duong province Payment method: 70% depositing by cash and the rest of amount completed after delivery Ho Chi Minh, Day 18 Month 11 Year 2019 Chief executive (Sign, full name) Ha Noi Civil Electric Hydraulic And Industrial Consultant JSC Form no: 01- VT (Issued according to The Circular 200/2014/TT-BTC of The Ministry of Finance on 22/12/2014) GOODS RECEIVED NOTE Day 11 month 08 year 2020 No: NK00074 -Deliverer’s name: Nguyễn Tuấn Anh -According: ………….Day 11 month 08 year 2020………………………………… -Input in stock: 156 Location: Warehouse 155 Nguyen Khang The name, brand, specification, No quality of materials and tools products and goods A B Đồng hồ nước Zenner WB-N Quantity Unit price vouchers Net inward Code Unit C D Peace 50 10,600,000 amount 530,000,000 Cơng tắc dịng Peace 70 630,000 44,100,000 chảy HFS20 Total 574,100,000 -Amount in words: five hundred and seventy-four million one hundred thousand dong -Original refno following: Prepared by Roundsman Store keeper Chief accountant (Sign, fullname) (Sign, fullname) (Sign, fullname) (Sign, fullname) Nguyễn Tuấn Anh Ha Noi Civil Electric Hydraulic Form no: 01- VT And Industrial Consultant JSC (Issued according to The Circular 200/2014/TT-BTC of The Ministry of Finance on 22/12/2014) GOOD DELIVERY NOTE Day 12 month 09 year 2020 No: NK00074 -Receiver’s Full Name: Hoàng Văn Chung -Detail of delivery: Installation works at the apartment building-177 Trung Kinh -Delivered at: the warehouse of company Unit: Dong No A The name,brand, specifications, quality of materials and tools products and goods B Wires- VCM mm2 -2.5 Wires- VCM mm2 - Công tơ điện tử pha EDMI Atlas MK10A U ni t Quantity Order quantities Unit price amount 1,723,600 Delivered qunatities C DD2.5 D 278 278 6,200 DD04 450 465 9,930 4,617,450 7,000 ,000 42,000,00 - - CT-02 - - - 48,341,05 -Total amount in words: fourty-eighth million three hundred fourty one thousand fifty Total - Code - Enclosed original document: Prepared by Roundsman Store keeper Chief accountant (Sign, fullname) (Sign, fullname) (Sign, fullname) (Sign, fullname) Detailed book of Account 621 Form no S38-DN Ha Noi Civil Electric Hydraulic (issued according to Circular And Industrial Consultant JSC No 200/2014/TT-BTC dated December 22, 2014 Department: production of the Ministry of Finance DETAIL BOOK OF ACCOUNT 621 November 2020 Model of work: Electrical installation Unit: Dong Notes No Date PXK00034 2020/04/15 Tranfer621 Total Detail PVC water pipe- 1.2 Tranfer of direct raw material cost to account 154 Account 152 Total Debit Credit 63,000,000 152 63,000,000 63,000,000 Made by Chief Accountant (Signed) (Signed) 63,000,000 The aggregate table of detailed book of Account 621 Ha Noi Civil Electric Hydraulic Form no S38-DN And Industrial Consultant JSC (issued according to Circular No 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance 621 DETAILED AGGREGATION TABLE November, 2020 No Name of items Beginning of peridod Dr PVC water pipe- 1.2 Cr During of period End of period Dr Cr Dr Cr 63,000,00 63,000,00 - - 63,000,00 Total Made by Chief Accountant (Signed) (Signed) The general ledger of account 621 Ha Noi Civil Electric Hydraulic Form no S38-DN And Industrial Consultant JSC (issued according to Circular No 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance THE GENERAL LEDGER November, 2020 Date Description Account no No Balance Debit Credit I Beginning incurred II Incurred at during period 2021/11/31 PVC water pipe- 1.2 152 2021/11/31 Tranfer to account 154 154 III Total IV End of operiod 63,000,000 63,000,000 63,000,000 - 63,000,000 - Made by Chief Accountant (Signed) (Signed) (Source: Accounting Department) Detailed book of Account 622 Form no S38-DN Ha Noi Civil Electric Hydraulic (issued according to Circular And Industrial Consultant JSC No 200/2014/TT-BTC dated December 22, 2014 Department: production of the Ministry of Finance DETAIL BOOK OF ACCOUNT 622 November 2020 Model of work: Electrical installation Unit: Dong Notes No Date QTL 2020/04/31 QTL 2020/04/31 Tranfer- acc 622 2020/04/31 Total Detail Total salary payable Deducting social insurance, health insurance, unemploymen t insurance Tranfer of direct labor costs to account 154 Total Account Total Debit Acc 334 47,600,000 Acc 338 4,372,060 Credit 51,972,060 51,972,060 Made by Chief Accountant (Signed) (Signed) 51,972,060 The aggregate table of detailed book of Account 622 Ha Noi Civil Electric Hydraulic Form no S38-DN And Industrial Consultant JSC (issued according to Circular No 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance 622 DETAILED AGGREGATION TABLE April, 2020 No Name of items Beginning of peridod Dr PVC water pipe- 1.2 Cr During of period End of period Dr Cr Dr Cr 63,000,00 63,000,00 - - 63,000,00 Total Made by Chief Accountant (Signed) (Signed) Detailed book of Account 627 Form no S38-DN Ha Noi Civil Electric Hydraulic (issued according to Circular And Industrial Consultant JSC No 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance DETAIL BOOK OF ACCOUNT 627 Name: Installation Service July 2020 No Items of account Amount Allocation expenses to the seervice Acc 627- tools and equipments expenses 10,809,000 6,380,000 Acc 627- fixed assets depreciation expenses 1,020,000 400,000 Acc 627- others expenses 7,000,000 3,500,000 Total 18,929,000 13,880,000 Made by Chief Accountant (Signed) (Signed) CRITIC’S JUDGEMENT Critic: Student: Đào Thị Hoa Group: 51.04 Intake: CQ 55 Topic: “ ” ……………………………………………………………………………………… ……………………………………………………………………………………… Mark:  - In number:  - In word: Critic  ... PRICING AT HA NOI CIVIL ELECTRIC HYDRAULIC AND INDUSTRIAL CONSULTANT JSC 2.1 Overview of Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC 2.1.1 General information of Ha Noi Civil Electric. .. prices at Ha Noi Civil Electric Hydraulic and Industrial Consultant JSC Chapter 3: Solutions to complete manufacturing costs accounting and evaluating product prices at Ha Noi Civil Electric Hydraulic. .. PRODUCT PRICES AT HA NOI CIVIL ELECTRIC HYDRAULIC AND INDUSTRIAL CONSULTANT JSC. 55 3.1 Orientations and recommandations for completing accounting for manufacturing costs and product price at