Manufacturing cost management of Bac Ky Investment Joint StockCompany...10CHAPTER 2 PRATICE OF ACCOUNTING FOR MANUFACTURINGCOSTS AND PRODUCT PRICING AT BAC KY INVESTMENT JOINTSTOCK COMPA
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: Speciality: Class: 58A Student’s ID: Supervisor: HANOI, 2020 Nguyen Thanh Hieu Accounting Advanced Accounting 11161824 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 OPENING CHAPTER CHARACTERISTICS OF SERVICE, MANUFACTURING ORGANIZATION AND COST MANAGEMENT AT BAC KY INVESTMENT JOINT STOCK COMPANY .4 1.1 Characteristics of service of Bac Ky Investment Joint Stock Company 1.1.1 Trucking Service .4 1.1.2 Warehouse Service 1.1.3 Barging Service .6 1.1.4 Container Yard 1.1.5 Custom Brokerage 1.2 Characteristics of service providing of Bac Ky Investment Joint Stock Company 1.3 Manufacturing cost management of Bac Ky Investment Joint Stock Company 10 CHAPTER 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 21 2.1.3 Accounting for manufacturing overhead costs 30 2.2 Service pricing 37 2.2.1 Subject and method of calculating service cost 37 2.2.2 Process of calculating overall service cost: 37 CHAP ASSESSMENTS AND RECOMMENDATIONS FOR IMPROVING ACCOUNTING FOR MANUFACTURING COSTS AT BAC KY INVESTMENT JOINT STOCK COMPANY 38 3.1 Assessments of accounting for manufacturing costs at Bac Ky Investment Joint Stock Company .38 3.1.1 Strengths 38 3.1.2 Weakness and causes 38 3.2 Recommendations for improving of accounting for manufacturing costs at Bac Ky Investment Joint Stock Company 39 3.1.1 Complete accounting for production cost from financial accounting perspective: 39 3.1.2 Complete accounting for production cost from management accounting perspective: 40 CONCLUSION 42 REFERENCES (TÀI LIỆU THAM KHẢO) 43 STATUTORY DECLARATION I hereby declare that the presented report of internship is uniquely prepared by me after the completion of months 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 .5 Table 2.1: Accounting source - General Journal 16 Table 2.1: Accounting source – Ledger Account 621 .17 Table 2.3: Accounting source – Subsidiary Ledger Account 621 .19 Table 2.4: Accounting source – Main drivers for calculating salary 22 Table 2.5: Accounting source – Deduction of Salary .23 Table 2.6: Accounting source – General Jounal Account 622 26 Table 2.7: Accounting source – Ledger Account 622 .27 Table 2.8: Accounting source – Subsidiary Ledger Account 622 .29 Figure 2.6: Process of recording Overhead cost .32 Table 2.9: Accounting source – General Jounal Account 627 33 Table 2.10: Accounting source – Leger Account 627 .34 Table 2.11: Accounting source – Subsidiary Ledger Account 627 36 LIST OF FIGURES Figure 1.1: Barging Volume at Two River Ports Source: BMT analysis based on interviews with Bac Ky and industrial stakeholders Figure 1.2: Providing service process Figure 1.3: Management structure 10 Figure 2.1: How are material used 12 Figure 2.2: Process of recording material 14 Figure 2.3: Recording Direct Material Cost 15 Figure 2.4: Process of calculating driver salary 22 Figure 2.5: Process of recording direct labor cost .25 Figure 2.6: Process of recording Overhead cost 32 OPENING The urgency of the subject 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