[Luận văn bằng tiếng anh - GRADUATION THESIS] ACCOUNTING FOR PRODUCTION COST AND PRODUCT COSTING AT HANOI – HAI PHONG BEER JOINT STOCK COMPANY

GRADUATION THESIS ACCOUNTING FOR PRODUCTION COST AND PRODUCT COSTING AT HANOI – HAI PHONG BEER JOINT STOCK COMPANYOur country’s economy is currently a market economy, enterprises that want to exist and develop must satisfy market demand, or in other words, businesses must comply with the law of supply and demand, the law of value and especially the law of competition in the market. In order for the products to stand firm in the market, companies must promote market research, change product designs accordingly, improve product quality and reduce costs.In order for their products to stand firm in the market, enterprises must promote market research, change product designs accordingly, improve product quality and reduce costs. In order to do that, companies must manage production cost effectively, record cost fully and promptly to calculate production cost accurately. From there, there are measures to help business improve their competitive advantage in the market.In terms of the whole economy, lowering the product cost of enterprises brings about an increase in the economys accumulation. Therefore, lowering product costs is not only a matter of businesses but also a matter of concern for the entire industry and society as a whole.Doing a good job of gathering and calculating product costs will help business calculate costs accurately to determine the business performance. At the same time, it will provide necessary information for the management and apparatus, so that managers can come up with appropriate strategic measures to help companies use capital effectively and proactive in the business activities.

MINISTRY OF FINANCE ACADEMY OF FINANCE ACCOUNTING FACULTY -*** - GRADUATION THESIS ACCOUNTING FOR PRODUCTION COST AND PRODUCT COSTING AT HANOI – HAI PHONG BEER JOINT STOCK COMPANY Teacher : PhD Thai Ba Cong MSc Nguyen Ba Linh Hanoi – 2021 COMMITMENT I hereby declare that the dissertation entitled “Cost accounting and product cost calculation at Hanoi – Hai Phong Beer Joint Stock Company” is the research work my own under the guidance of…, the data, the results stated in the dissertation is honest, comes from the actual situation of Hanoi – Hai Phong Beer Joint Stock Company Dissertation writer TABLE OF CONTENTS INTRODUCTION .8 CHAPTER 1: THE GENERAL THEORY OF ACCOUNTING FOR PRODUCTION COST AND PRODUCT COSTING AT MANUFACTURING ENTERPRISES 11 1.1 The need of accounting for production cost and product costing at manufacturing enterprises 11 1.1.1 Concept, essence of production cost and product cost 11 1.1.2 Management requirements for accounting for production costs and product costing .13 1.1.3 Tasks of accounting for production cost and product costing: 14 1.2 Classification of production costs and product costs: .15 1.2.1 Classification of production costs: 15 1.2.2 Classification of product costs: 19 1.3 Objects of production cost accounting and product costing 20 1.3.1 Objects of production cost accounting: .20 1.3.2 Objects of product costing 20 1.3.3 The relationship between objects of production cost accounting and objects of product costing .21 1.4 Accounting for production costs according to the utility purpose of costs .21 1.4.1 Accounting for direct raw material costs 21 1.4.2 Accounting for direct labour costs .23 1.4.3 Accounting for production overhead costs 24 1.4.4 Accounting for production costs for the whole enterprise 26 1.5 Methods of valuing closing work in progress 28 1.5.1 Valuing closing work in progress based on direct material costs 29 1.5.2 Valuing closing work in progress based on equivalent units 30 1.6 Product costing method in enterprises .31 1.7 Organization of production cost accounting and product costing in terms of information technology application 33 1.7.1 Functions and duties of production cost accounting and product costing in terms of information technology application 33 1.7.2 Principles and order of accounting for production cost and product costing in terms of information technology application: 34 1.8 Accounting book to accumulate production costs and product costs: 35 CHAPTER 2: ACTUAL SITUATION OF ACCOUNTING FOR PRODUCTION COST AND PRODUCT COSTING AT HANOI – HAI PHONG BEER JOINT STOCK COMPANY 38 2.1 Overview of Hanoi – Hai Phong Beer Joint Stock Company 38 2.1.1 History of establishment and development of Hanoi – Hai Phong Beer Joint Stock Company: 38 2.1.1 Organizational characteristics of production and business activities in Hanoi – Hai Phong Beer Joint Stock Company 40 2.1.1 Organizational and management characteristics of Hanoi - Hai Phong Beer Joint Stock Company 48 2.1.4 Organizational characteristics of accounting work at Hanoi – Hai Phong Beer Joint Stock Company .52 2.2 Actual situation of production cost accounting and product cost calculation at Hanoi – Hai Phong Beer Joint Stock Company 61 2.2.1 Objects and accounting methods for accumulating production costs: 61 2.2.2 Classifiaction of production costs: 61 2.2.3 Accounting for production cost: 62 2.2.4 Actual situation of product costing at Hanoi – Hai Phong Beer Joint Stock Company .98 2.3 General assessments of accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company 112 CHAPTER 3: SOME COMMENTS TO IMPROVE ACCOUNTING FOR PRODUCTION COST AND PRODUCT COSTING AT HANOI – HAI PHONG BEER JOINT STOCK COMPANY 120 3.1 Development orientation of Hanoi – Hai Phong Beer Joint Stock Company 120 3.2 Principles and requirements for improving accounting for production cost and product costing at Hanoi – Hai Phong Joint Stock Company 122 3.2.1 Principles for improving accounting for production cost and product costing at Hanoi – Hai Phong Joint Stock Company .124 3.2.2 Requirements for improving accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company 124 3.3 Solutions to improve accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company 125 CONCLUSION 133 REFERENCES 134 LIST OF DIAGRAMS IN THE DISSERTATION No 1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 2.4 2.5 3.1 3.2 3.3 3.4 Name Page Diagram of the major accounting transaction on direct raw 22 material cost Diagram of the major accounting transaction on direct labor cost 24 Diagram of the major accounting transaction on production 25 overheads Diagram of accounting of production cost of the whole 26 enterprise according to the perpetual inventory method Diagram of accounting of production cost of the whole 28 enterprise according to the periodic inventory method The stages of the beer production at the company 44 Technological process of beer production at the company 47 Organizational structure in the company 48 Organizational chart of the company’s accounting department 53 Accounting procedure on BRAVO 60 Accounting for loss due to unplanned damaged products 128 Accounting for loss due to planned damaged products 128 Accounting for production stoppage losses in the plan 129 Accounting for unplanned production stoppage losses 130 LIST OF TABLES IN THE DISSERTATION No 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.1 2.1 2.1 Name Table of raw material norm for the beer production Payroll (Accounting department) Payroll (Factory) Allocation table insurance Table of tools and supplies Assets summary table Table of costing Table of costing and factors of increase and decrease Price list and other factors (the norm method) Planned product cost list according to actual output Pag e 64 73 74 75 86 91 100 102 104 106 Table of product costing of Hai Phong Beer 107 Table of product costing 107 INTRODUCTION The urgency of the research: Our country’s economy is currently a market economy, enterprises that want to exist and develop must satisfy market demand, or in other words, businesses must comply with the law of supply and demand, the law of value and especially the law of competition in the market In order for the products to stand firm in the market, companies must promote market research, change product designs accordingly, improve product quality and reduce costs In order for their products to stand firm in the market, enterprises must promote market research, change product designs accordingly, improve product quality and reduce costs In order to that, companies must manage production cost effectively, record cost fully and promptly to calculate production cost accurately From there, there are measures to help business improve their competitive advantage in the market In terms of the whole economy, lowering the product cost of enterprises brings about an increase in the economy's accumulation Therefore, lowering product costs is not only a matter of businesses but also a matter of concern for the entire industry and society as a whole Doing a good job of gathering and calculating product costs will help business calculate costs accurately to determine the business performance At the same time, it will provide necessary information for the management and apparatus, so that managers can come up with appropriate strategic measures to help companies use capital effectively and proactive in the business activities Aware of the importance of the problem, I chose the topic “Accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company” as the research topic for my thesis with the desire to find useful solutions to contribute to the work of renewing management methods of Hanoi – Hai Phong Beer Joint Stock Company Research purpose: Firstly, systematize the theoretical bases of accounting for production cost and product costing Secondly, study the actual problems of accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company, combine comparision and contrast with the general theoretical basis of accounting system to evaluate and comment on the current status of this accounting practice Thirdly, give conclusions and proposals to improve accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company, and at the same time provide conditions for the implementation of those proposals Object and scope of the research: - Object of the research: Accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company - Scope of the research: Learn and evaluate the accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company Research methods: To study the issues raised, the author uses qualitative and quantitative methods to research through specific tools and methods, which are data collection and data analysis processing Primary data collection method: - Interview method: The author uses this method to collect information on accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company - Methods of field research: The author directly observes at the accounting department in general and production cost and product costing team in particular The author studies the behaviour of administrators and accountants who practice accounting for production cost and product costing Secondary data collection method: Secondary data is pre-existing data that has been collected Through questionnaires, previous interviews or information obtained through researching documents of Hanoi – Hai Phong Beer Joint Stock Company, newspapers, internet are used as the basis to analyze the current situation of the enterprise in terms of assets, capital sources, business results and collect data on production cost accounting and product cost calculation of the enterprise The structure of the thesis: Apart from the introduction and conclusion, the content of the dissertation consists of the following three chapters: Chapter 1: The general theory of accounting for production cost and product costing at manufacturing enterprises Chapter 2: Actual situation of accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company Chapter 3: Some comments to improve accounting for production cost and product costing at Hanoi – Hai Phong Beer Joint Stock Company 10