Accounting For Manufacturing Costs And Products Pricing At Bac Ky Investment Joint Stock Company.docx

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS BACHELOR THESIS Accounting TOPIC ACCOUNTING FOR MANUFACTURING COSTS AND PRODUCTS PRICING AT BAC KY INVESTMENT JOINT STOCK COMPANY NGUYEN THA[.]

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS BACHELOR THESIS Accounting TOPIC: ACCOUNTING FOR MANUFACTURING COSTS AND PRODUCTS PRICING AT BAC KY INVESTMENT JOINT STOCK COMPANY NGUYEN THANH HIEU HANOI, 2020 NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS BARCHELOR THESIS TOPIC: ACCOUNTING FOR MANUFACTURING COSTS AND PRODUCTS PRICING AT BAC KY INVESTMENT JOINT STOCK COMPANY Student: Nguyen Thanh Hieu Speciality: Accounting Class: Advanced Accounting 58A Student’s ID: 11161824 Supervisor: HANOI, 2020 Dr Doan Thanh Nga ACKNOWLEDGEMENTS It is my great honor to express my gratitude to Bac Ky Joint Stock Company for facilitating me to prepare this internship report First and foremost, I would like to give huge thanks to my respected advisor, Ms Doan Thanh Nga for his valuable guidance and precious suggestion in the completion of this report.  I would like to give thanks to Mr Nguyen Tran Hieu – the CEO and huge thanks to Mr Ata Onat – CFO & Ms Nguyen Thi Tuyet Trinh – Chief Accountant Last but not least, I would like to give thanks to all staff in Bac Ky Invesment Joint Stock Company, who help me a lot to understand more about company I am aware that that this is a valuable opportunity not only for my graduation but also for my career path in the future This is very first step, but it is absolutely lucky for me to get this opportunity I tried to have a completed internship report; however, because of short practice time and limited knowledge, this report may get inevitable errors I hope that I can get the feedback to have a better version of myshelf TABLE OF CONTENT ACKNOWLEDGEMENTS TABLE OF CONTENT STATUTORY DECLARATION LIST OF TABLES LIST OF FIGURES INTRODUCTION CHAPTER 1: CHARACTERISTICS OF SERVICE, MANUFACTURING ORGANIZATION AND COST MANAGEMENT AT BAC KY INVESTMENT JOINT STOCK COMPANY 1.1.Characteristics of service of Bac Ky Investment Joint Stock Company .4 1.1.1.Trucking Service 1.1.2.Warehouse Service .5 1.1.3.Barging Service .5 1.1.4.Container Yard 1.1.5.Custom Brokerage 1.2.Manufacturing cost management of Bac Ky Investment Joint Stock Company 10 CHAPTER 2: PRATICE OF ACCOUNTING FOR MANUFACTURING COSTS AND PRODUCT PRICING AT BAC KY INVESTMENT JOINT STOCK COMPANY 12 2.1. Accounting for Transportation service costs at Bac Ky Investment Joint Stock Company .12 2.1.1 Accounting for direct material costs 12 2.1.2 Accounting for direct labor cost 24 2.1.3 Accounting for manufacturing overhead costs 39 2.2 Service pricing 48 2.2.1 Subject and method of calculating service pricing 48 2.2.2 Process of calculating overall service pricing: 50 3.1 Assessments of accounting for manufacturing costs at Bac Ky Investment Joint Stock Company 52 3.1.1.Strengths .52 3.1.2.Weakness and causes 53 3.2 Recommendations for improving of accounting for manufacturing costs at Bac Ky Investment Joint Stock Company 54 3.2.2.Complete accounting for production cost from financial accounting perspective: 54 3.2.3.Complete accounting for production cost from management accounting perspective: 55 CONCLUSION 57 REFERENCES 58 STATUTORY DECLARATION I hereby declare that the presented report of internship is uniquely prepared by me after the completion of month intern at Bac Ky Investment Joint Stock Company I also confirm that the report is only prepared for my academic requirement, not for any other purpose It might not be used with the interest of the opposite party of the corporation Hanoi, 10/05/2020 Signature Nguyen Thanh Hieu LIST OF TABLES Table 1.1: Type of Truck service Table 2.1: Accounting source – Main drivers for calculating salary 25 Table 2.2: Accounting source – Deduction of Salary 25 Table 2.3: Quota of pricing 50 LIST OF FIGURES Figure 1.1: Barging Volume at Two River Ports Figure 1.2: Providing service process Figure 1.3: Management structure .10 Figure 2.1: The process of transfer materials .12 Figure 2.2: Process of recording material 13 Figure 2.3: Proposal for providing oil 14 Figure 2.4: Receipt delivery .15 Figure 2.5: Oil Invoice 17 Figure 2.6: Accounting source – Subsidiary Ledger Account 621 .18 Figure 2.7: Recording Direct Material Cost .19 Figure 2.8: Accounting source - General Journal .21 Figure 2.9: Accounting source – Ledger Account 621 .22 Figure 2.10: Example of calculating driver salay .26 Figure 2.11: Process of calculating driver salary .28 Figure 2.12: Driver Schedule from TRANS Department 29 Figure 2.13: Overtime wage by Accounting TRANS Department 30 Figure 2.14: Driver Salary Confirmation 31 Figure 2.15: Total Salary for Drivers 32 Figure 2.16: Accounting source – Subsidiary Ledger Account 622 33 Figure 2.17: Process of recording direct labor cost 34 Figure 2.18: Accounting source – General Jounal Account 622 36 Figure 2.19: Accounting source – Ledger Account 622 .37 Figure 2.20: Invoice for manufacturing overhead cost .41 Figure 2.21: Accounting source – Subsidiary Ledger Account 627 42 Figure 2.22: Process of recording other overhead cost 43 Figure 2.23: Accounting source – General Jounal Account 627 45 Figure 2.24: Accounting source – Leger Account 627 .46 Figure 2.26: Internal Quotation 51 INTRODUCTION Rationale for the research In order to effectively manage the business activities or service production of an enterprise in particular, the national economy of a country in general needs to use different management tools and one of the indispensable management tools is accounting Businesses operating in the middle of the market are regulated and fiercely competitive, when deciding to choose a production method for a certain product, they need to consider the least amount of cost to produce,which means businesses must gather sufficient and accurate production costs Product cost is an important quality indicator reflecting the results of production activities or increasing, showing the results of management of materials, labor and cash This depends on the process of gathering production costs of the business Along with the renewal and general development of the economy, with the open door policy, foreign investment and to show the career of technology development - modernize enterprises, they are increasingly diversifying products, type of business, renovating management methods, constantly developing and affirming an important role in the national economy However, nowadays, in the manufacturing enterprises, accounting of production costs and calculating product prices still not meet the management requirements and integration process Therefore, the completion of accounting in general, accounting of production costs and calculation of product costs is not only in order to accurately reflect costs but also serve as a basis for providing information for operating, cost checking and strategic planning Therefore, the accountant gathers the production costs and calculates the product costs as a continuous process, having a close relationship with each other Through this, managers will find the reason why the cost increase and lead to price increases and thereby find a suitable solution Through practical research, I realized that the cost accounting and product cost in the company have some points that need to be improved Therefore, I chose the topic: "Accounting of costs and product costs at Bac Ky Investment Joint Stock Company" for my graduation report Research purpose The thesis contributes to clarify the theoretical issues about the accounting of product cost and product price calculation of Bac Ky Investsment Company Based on the research, we can see the advantages and disadvantages of the accounting of product cost and product price calculation of Bac Ky Investsment Company Then, I can propose solutions to overcome shortcomings and make recommendations in order to contribute to perfecting the accounting of product cost and product price calculation of Bac Ky Investsment Company Subjects, purposes and scopes of the research of the accounting on payroll and payroll deduction Research subjects: Study Accounting Procedures for product cost and product price at Bac Ky Investment joint stock company according to accounting system – circulars 200/TT-BTC Research scope: Focus on researching theoretical issues and reality accounting procedures for product cost and product price from financial accountant in 2019 Research methods: To complete this report, the authors used the following research methods: - Method of document research: collecting information from circulars, state resolutions, existing documents circulating in the enterprise - Observation method: In order to directly approach and observe working operations of employees in the enterprise so that they can understand the cost accounting process at the enterprise level - Methods of summarizing and analyzing data: summarizing survey results, generalizing them into groups of issues Main structure of the thesis The thesis includes chapters: Chapter 1: Characteristics of service, manufacturing organization and cost management at Bac Ky investment joint stock company Chapter 2: Practice of accounting for manufacturing costs and product pricing at Bac Ky investment joint stock company Chapter 3: Assessments and recommendations for improving accounting for manufacturing cost at Bac Ky investment joint stock company ... COSTS AND PRODUCT PRICING AT BAC KY INVESTMENT JOINT STOCK COMPANY 2.1.? ?Accounting for Transportation service costs at Bac Ky Investment Joint Stock Company 2.1.1 Accounting for direct material costs. .. service, manufacturing organization and cost management at Bac Ky investment joint stock company Chapter 2: Practice of accounting for manufacturing costs and product pricing at Bac Ky investment joint. .. SERVICE, MANUFACTURING ORGANIZATION AND COST MANAGEMENT AT BAC KY INVESTMENT JOINT STOCK COMPANY 1.1 Characteristics of service of Bac Ky Investment Joint Stock Company Bac Ky Investment Joint Stock