PRODUCTION EXPENSES COLLECTION ACCOUNTING AND CALCULATE THE PRODUCT PRICE AT THE COMPANY 319 MIIEN TRUNG JOINT STOCK COMPANY

TRƯỜNG ĐẠI HỌC DUY TÂN VIỆN ĐÀO TẠO QUỐC TẾ UNDERGRADUATE THESIS TOPIC: PRODUCTION EXPENSES COLLECTION ACCOUNTING AND CALCULATE THE PRODUCT PRICE AT THE COMPANY 319 MIIEN TRUNG JOINT STOCK COMPANY GVHD : Th.S HOÀNG ANH THƯ SVTH: : TRẦN THỊ THÙY DUNG LỚP : K23 PSU KKT1 MSSV : 1820253901 Đà Nẵng, tháng 04 năm 2020 CHAPTER 1: GENERAL THEORETICAL BASIS OF COMBINED CONSTRUCTION ACCOUNTING AND PRODUCT PRICE CALCULATION 1.1 General theoretical basis on accounting of construction costs and product price calculation 1.1.1 Construction costs 1.1.1.1 Concept Cost for Production is the monetary expression of the total waste of living labor and animalification needed to build or renovate, expand or retool the engineering of the work that the enterprise has spent in a period certain (quarter, year) 1.1.1.2 Classification of production costs The cost classification is applied by enterprises depending on production and business characteristics, management and professional qualifications so that they are reasonable Hence, the Production cost classification is an arrangement of the costs of production into different categories and groups according to certain characteristics Production cost classification according to the content and economic nature of the cost - According to this classification, the costs are of the same content, are economical to be included in one factor, no of where the portfolio cost is available or used purpose in the manufacturing process Includes the following basic cost factors: Cost of raw materials and tools: : Including all costs of main materials, auxiliary materials, spare parts, costs of fuel, driving force and production tools that the enterprise has used for production activities in period + Labor cost: Including salary, wages, shift pay and salary-related allowances of the production department, including the full deduction of social insurance, health insurance, unemployment insurance business, business non-union of production workers in the enterprise + Fixed asset depreciation expense: Reflects the total depreciation of a fixed asset that must be deducted in the period of all fixed assets used for production + Cost of services purchased from outside: Is the total amount that the enterprise pays for services purchased from outside services for production activities + Cost classification of production costs by target and utility of costs In the enterprise, all production costs incurred in the period are divided into Account costs : + Direct raw material cost: Is the cost constituting the production or finished product of the enterprise Includes the full value of the primary or secondary material directly used in the manufacture of the product or carried out in the production period + Direct labor costs: are the costs of wages, wages, salary allowances and salary deductions of workers directly producing products or performing services + General production costs: are costs for general production activities at the workshop, including the remaining production costs at the workshop such as indirect labor, indirect materials, fuel costs, motivation, depreciation cost, other monetary cost Classify costs according to the method of aggregating costs and the relationship with the cost bearers Classification by cost subjects: + Direct costs: Production costs directly related to the production of a given production volume Based on data from accounting vouchers to record directly to each expense subject + Indirect costs: The production costs associated with the production of multiple products These costs must be through allocation to the relevant cost bearers according to an appropriate criterion Classification according to the content constituting the cost: + Unitary cost: Is the cost constituted by a single cost factor such as cost of main materials used in production, depreciation of fixed assets General costs: The costs include many different factors but have the same use as general production costs - Classify costs according to the relationship between costs and product objects For this classification, the entire production cost is divided into categories: + Variable costs (variable costs): Are the costs with the change in quantity correlated directly with the change of the volume of products produced in the period such as: Cost of raw materials, direct labor costs, + Fixed costs (fixed charges): Are costs that not change in total when volume of products produced within a certain extent such as: discounted costs depreciation of fixed assets according to the straight-line method, electricity costs for lighting, - + 1.1.2 Product price 1.1.2.1 Concept Product cost is the monetary expression of all labor waste related to the entire completed work, product and labor volume In the product price, only costs related to the production process are included, not include costs incurred in the business cycle of the enterprise 1.1.2.2 Price classification - Sort by time and database to calculate prices Based on data and time of price calculation, product prices are divided into categories: Planned cost: Is the product cost calculated on the basis of planned production costs and planned output The planning cost calculation is carried out prior to the production and fabrication of products and by the planning department The planned cost is the target of the enterprise to strive as a basis for comparing, analyzing and evaluating the implementation of the plan to lower the cost of the business + Fixed cost price: is the product cost which is calculated on the basis of the fixed cost of production costs and calculated for a product unit The norm price calculation is also done before the product is manufactured or fabricated The norm cost is a tool for managing the enterprise's norms, considered an accurate measure to evaluate the results of using assets, materials, capital and labor in production in order to improve production efficiency business + Actual cost: Is the product cost calculated on the basis of data of actual production costs incurred and gathered in the period and the actual output produced in the period + - Price classification according to the range of calculations Price into products is divided into categories: Production cost (factory cost): Including direct raw material and material costs; Direct labor costs; production overheads calculated for products, jobs or services provided Production cost is used to record the finished products stocked or delivered to customers and is the basis for calculating cost of goods sold + Total cost of consumed product: Including production cost and selling cost, business management cost calculated for sold product Bases for the calculation and determination of the pre-tax profit of the enterprise + + Total cost = Production cost - Selling cost – Cost business management 1.1.3 The relationship between production cost and cost calculation Production cost and product cost calculation are two aspects of the production process that have a relationship with each other and are similar in quality Different : + In terms of scope: Production cost includes both the cost of product production and the cost of business management and product consumption + The product cost only includes the production cost of the product In terms of quantity: The cost of production is the waste in a period The product cost is related to the cost of the previous period carried over and the amount of the product cost is carried over to the next period The relationship between production cost and product cost is shown in the following formula: Total cost = Production in progress at the beginning of the period + Production costs incurred in the period - Production in progress at the end of the period 1.1.4 The task of production cost accounting and cost calculation - - - Determine the right audience for production costs, production costs, and organize the collection of costs according to the right subjects, in accordance with the characteristics and requirements of enterprise management Determine the exact cost of work in progress at the end of the period Accurately and fully reflect the actual expenses incurred in the production process Therefore, it is necessary to check the cost norms, the cost estimates in order to reduce the cost of the product Accuracy and timeliness of product costs, completed work Analyze the situation of costs and costs Applying accounting accounts to record production costs and calculate product prices in accordance with production characteristics 1.2 SUBJECTS AND METHODS OF COMBINATION OF PRODUCTION EXPENSES 1.2.1 Objects set production costs 1.2.1.1 Object concept sets production costsObject concept sets production costs The range or limit that production costs must be aggregated in order to meet requirements demand for checking and supervising production costs and serving the work of product costing Bases for determining the accounting objects for aggregating production costs: The characteristics and use of costs in the production process The characteristics of the production structure of the business Technological process of manufacturing and manufacturing products The product's characteristics (technical characteristics, usage characteristics ) + Requirements on management qualifications and production and business + + + + 1.2.1.2 The meaning of production cost aggregation object The meaning of the object of production cost aggregation is very important in organizing the accounting organization to gather production costs from the initial accounting organization to the collection of data recorded on accounts and books detail It will serve as the basis for calculating the cost of the product It is also a tool to measure the company's performance, determine the correct, sufficient and exact cost of the product 1.2.2 Production cost aggregation method The production cost aggregation method is a method used to aggregate and classify the limited ranges of cost objects The accountant can use the appropriate production cost aggregation method There are two methods of aggregating production costs 1.2.2.1 Direct method This method is applicable in cases where production costs are directly related to each object of separate production cost accounting Therefore, it is possible to base on original vouchers to directly account for each individual object 1.2.2.2 Indirect method The indirect method is applied in cases where the arising production costs are related to many cost accounting objects, it is not possible to record separate records for each object Therefore, it must be aggregated for many objects, then choose to allocate this cost to each cost accounting object The allocation for each object: Ci = Ti * H (i = 1, n) Inside: H: Distribution coefficient Ci: Cost allocated to each object i Ti: Standards of allocation for each object i 1.3 Subjects and method of cost calculation 1.3.1 Accounting for revenue sales and providing services 1.3.1.1 Subjects costing As the types of products produced by enterprises or services provided to customers, the total cost and unit cost of the product must be calculated To determine the correct price calculation object, the price accounting department must also base on characteristics of production organization and production structure, product use characteristics, semi-finished products, requirements and submission management level, computer application level in accounting work of enterprises In terms of organization of production: - If the organization produces singly, each product, each job is the subject of - cost calculation If the organization produces mass production or produces according to orders, the price calculation object is each product series or each order In terms of process technology and production: - If the production technology process is simple, the object of the cost - calculation is the finished product at the end of the production process If the technological process of production is complicated continuously, the object of the price calculation is a finished product or possibly a semifinished product from processing 1.3.2 Cost calculation method 1.3.2.1 Direct method The simple costing method is suitable for manufacturing enterprises with simple production technology processes, with a small quantity of products, and relatively suitable objects for aggregating production costs According to this method, the product cost is calculated on the basis of the total production costs in the period, the cost of work in progress at the beginning and the end of the period Formula for calculation: Total cost = Cost of products in work in progress at the beginning of the period + Cost of production in the period - Cost of production in progress at the end of the period 1.3.2.2 Total cost method Applicable to enterprises in which the product manufacturing process is carried out in many production departments, multiple technology stages, the object of which the production cost is the product detail parts or the technology stage or production Formula for calculation: Total cost of production = Total cost of production of products gathered during the period 1.3.2.3 Coefficient method It is applied in enterprises where in the same production process, using the same material and the same amount of labor, many different products are obtained at the same time and the cost is not separately aggregated for each type of product but to focus on the whole production process Formula for calculation: Price into real units = Price to units * Coefficient of converting production product each original product each type Total cost = Cost of products in work in progress at the beginning of the period + Cost of production in the period - Cost of production in progress at the end of the period 1.3.2.4 Proportional method This method is applied in enterprises where in the same production process, using the same raw material, the product group of the same type with different sizes and production is obtained Cost aggregation object is the combination of each product group of the entire technological process, the object of price calculation is each type of product in that process Determine the cost ratio: Determine the price according to each specification and size Actual cost = Planning cost * Cost cost ratio 1.3.2.5 The method of eliminating the value of by products This method applies to enterprises that look at the same production process, and besides the main products obtained can also obtain by-products To calculate the cost of the main product, the accountant must exclude the value of the byproduct from the total cost of manufacturing the product Total cost of main product = Value of SPDD at the beginning of the period + CPSXPS value in the period + Value of SPDD at the end of the period - Value of supplementary products Where the subproduction value can be determined by the usable price, estimated price, planned price, initial raw material price 1.3.2.6 Combination method Is the method applied in businesses that have production organization, calculation the nature of technological processes and the nature of products made require a price calculation many different methods must be combined such as shipbuilding and textile enterprises sewing, In fact, accountants can combine direct methods with sum add cost, total cost with ratio 1.4 Production expense accounting 1.4.1 Direct material accounting 1.4.1.1 Content Direct raw material costs are those for primary raw materials and supplies auxiliary materials used directly for the production and manufacture of products These costs, often set cost norms and organize management according to norms Actual direct raw material cost in the period is determined by the formula recipe : Actual direct material costs in the period = Value of direct raw materials at the beginning of the period + Value of direct raw materials in the period - Value of direct raw materials at the end of the period - Value of scrap recovered (if any) 1.4.1.2 Chứng từ - Phiếu xuất kho Giấy đề nghị tạm ứng Hóa đơn GTGT đầu vào ( mua nguyên vật liệu sử dụng không qua nhập kho ) 1.4.1.3 Kế toán chi tiết + - Sổ chi tiết Sổ chi phí sản xuất kinh doanh mở TK 621 “ chi phí nguyên liệu, vật liệu trực tiếp ” Phương pháp kế toán Để theo dõi chi phí nguyên vật liệu xuất dùng cho đối tượng ta phải mở sổ “ chi phí nguyên vật liệu trực tiếp ” Mỗi đối tượng mở sổ riêng để theo dõi Trong đó, đối tượng có vật liệu chính, vật liệu phụ, nhiên liệu… để dùng Based on the detailed book of TK 622, we proceed to the ledger: 2.2.2.3 Cost accounting for the use of constructional machines 2.2.2.3.1 Content The cost of using constructional machines at 319 Mien Trung Joint Stock Company includes costs related to the operation of construction machinery and equipment such as fuel costs (oil costs) serving construction machines, The depreciation cost of constructional machines is collected into account 623 - "Expenses for the use of construction machines" Expenses such as: costs of infrastructure for construction machines, salaries ofworkers driving machines, costs of services purchased from outside and other monetary costs are included in Account 642 - “Enterprise administrative expenses " At the construction work, renovating and upgrading the Cham museum, the accountant gathers the cost of constructional machines into accounts: Account 623 - "The cost of using construction machines", the cost of oil and Account 642 "Expenses for corporate management fee” for the costs of CCDC serving construction machines, costs of workers driving machines, costs of services purchased from outside and other monetary costs 2.2.2.3.2 Documents Accounting vouchers the company uses for gathering CP using construction machines: Invoices, delivery records, receipt notes, request for supply of supplies, delivery notes, written requests for advances, payment request (in case the cost of using machine is fuel), detailed book of account "623 - cost of using construction machine" On October 15, the company spent money to buy machine oil for the project Based on the request for supply of supplies and VAT invoices, we have a receipt note: 2.2.2.4 Production cost accounting at the company 2.2.2.4.1 Content General production cost is the expense for stone extraction and production, such as the cost of the team manager, the cost of materials, tools and tools incurred for the operation of the production team, depreciation, fixed assets Fixed asset depreciation expense: The Company organized a fixed asset evaluation and classification council at the company, considering that fixed assets have the following two criteria: - Have a use time of more than year - The original cost of the asset must be determined reliably and with a value of VND 10,000,000 or more If the above two criteria are met, they will be considered as fixed assets while other assets are put into tools and instruments to be gradually distributed into product costs 2.2.2.4.2 License Recording vouchers: + Invoice + Payment slip + Table of depreciation distribution of fixed assets Specifically, at 391 Mien Trung Joint Stock Company Bill: From the VAT invoice (electricity bill) we have a payment slip: At the end of the quarter, based on the accounting cash note, make a statement and record credit of account 111 (for debt reciprocal of account 627) Currently, all fixed assets in the company have their own set of records, monitored, managed, used and depreciated in accordance with the Circular No 45/2013/TTBTC of the Ministry of Finance, in accordance with regulations and compliance Principle, assessed according to historical cost, accumulated depreciation and residual value in accounting books of fixed assets 2.2.2.4.3 Detail accountant + Detailed book of Account 627 2.2.2.4.4 General Accountant - Use books + Ledger 2.2.2.5 Summary of production costs and assessment of final work in progress 2.2.2.5.1 Content All costs related to product cost in the period including direct raw material cost, direct labor cost, cost for using constructional machines, and overheads to be allocated and transferred to Account 154 - Work in progress Production and business costs are opened in detail for each work, work item At the end of the price calculation period, the value of completed works will be transferred to Account 632 2.2.2.5.2 Detail accountant + Detailed book of Account 627 2.2.2.5.3 General Accountant - Use books + Ledger 2.2.2.5.4 Reviewing unfinished products at the end of the period For products with short production activities, there are no unfinished products 2.5.2.5.5 Costing Based on the ledger of Account 621, Account 622, and Account 627, the accountant reports on construction and installation costs: ... classification - Sort by time and database to calculate prices Based on data and time of price calculation, product prices are divided into categories: Planned cost: Is the product cost calculated... is calculated on the basis of the fixed cost of production costs and calculated for a product unit The norm price calculation is also done before the product is manufactured or fabricated The. .. cost: Is the product cost calculated on the basis of data of actual production costs incurred and gathered in the period and the actual output produced in the period + - Price classification according