Accounting for assembling production cost and calculating construction product cost in nam phuong construction joint stock company

Companies always want to maximize its profits. To achieve this goal, they will have to look for ways to save money from production, ultimately reduce production cost and increase the quality of product. To achieve sustainable growth, company needs to have a good management system and adding product value through inbound and outbound logistic, not only identify the construction cost, but also how and where costs are incurred, how cost relates to constructing activities and wasted. Constructing cost accounting and calculating the price of finishing goods and constructing industry is an important aspect that is concerned by many companies. In current economic condition, reducing constructing cost and finishing prices play an important role in increasing profits and cash, which is the amount of money to ensure the existence and the comparative position for the company in nowadays intense market. After the time studying at school and working at Nam Phuong construction joint stock company. Thesis has defined the content and purpose of the study is learn about set of manufacturing costs and construction product costs at Nam Phuong Construction Joint Stock Company. From which proposed the measures needed to improve the quality, efficiency, finishing cost accounting and calculating construction product cost at the company.

I certify that the attached thesis is my orginal work No other person’s work hasbeen used without due acknowledgement Except where I have clearly stated that Ihave used some of this material, it has not been presented by me for examination inany other course or subject at this or any other institution

I understand that the work submitted may be reproduced and/or communicated forthe purpose of detecting plagiarism I understand that should this declaration befalse, I am libel to be penalized under the Duy Tan University regulations

In the market economy, which is very diverse and rich, between theory andreality there are not the same problem So, from theory is learned when applyingreality faced many difficulties The first, myself exposure toreal, so the commentsargue, think still immature, not enough to convince I look forward to receivingyour opinions teachers and uncles accounting department to make the projectbetter

I sincerely thanks for many help and deeply gratitude to leadership of thecompany, he departments, directly as everyone in the accounting department hasguide and provide the necessary information to help me complete this project

I sincerely thanks Mrs Vo Thi Thuy Tien has guided and helped me a lot in the work of editing and supplementing the missing information and create

condition for me complete this project

Companies always want to maximize its profits To achieve this goal, theywill have to look for ways to save money from production, ultimately reduceproduction cost and increase the quality of product To achieve sustainable growth,company needs to have a good management system and adding product valuethrough inbound and outbound logistic, not only identify the construction cost, butalso how and where costs are incurred, how cost relates to constructing activitiesand wasted

Constructing cost accounting and calculating the price of finishing goodsand constructing industry is an important aspect that is concerned by manycompanies In current economic condition, reducing constructing cost and finishingprices play an important role in increasing profits and cash, which is the amount ofmoney to ensure the existence and the comparative position for the company innowadays intense market

After the time studying at school and working at Nam Phuong constructionjoint stock company Thesis has defined the content and purpose of the study islearn about set of manufacturing costs and construction product costs at NamPhuong Construction Joint Stock Company From which proposed the measuresneeded to improve the quality, efficiency, finishing cost accounting and calculatingconstruction product cost at the company

ACKNOWLEDGMENT ii

ABSTRACT iii

INTRODUCTION 1

CHAPTER 1.THEORY BASES ACCOUNTING FOR ASSEMBLING PRODUCTION COST AND CALCULATING COST OF CONSTRUCTION PRODUCTS 5

1.1 The scientific basis of accounting for assembling production cost and calculating cost of construction products.[1] 5

1.1.1 Characteristics of construction enterprises affect accounting work gathers cost and construction cost of products 5

1.1.1.1 Characteristics of construction products[5] 5

1.1.1.2 The tasks of accounting for assembling production cost and calculating cost of construction products 6

1.1.2 Definition and classification construction product costs 7

1.1.2.1 Definitions construction product costs 7

1.1.2.2 Classification of construction product costs 8

1.1.3 Definition and classification cost of construction products[3] 10

1.1.3.1 Definition cost of construction products 10

1.1.3.2 Classification cost of construction products 11

1.1.4 The relationship between construction product costs and cost of construction products[2] 11

1.1.5 Roles and meaning of accounting for assembling production cost and calculating cost of construction products[4] 12

1.1.5.1 Role of accounting for assembling production cost and calculating cost of construction products 12

1.1.5.2 Meaning of accounting for assembling production cost and calculating cost of construction products 13

1.2 Accounting for assembling production cost and calculating cost of construction products[1] 13

1.2.1 Accounting for assembling production cost 13

1.2.1.1 Accounting for direct materials cost 13

Figure 1.1: Accounting for assembling direct materials cost 15

1.2.1.2 Accounting for direct labor costs 15

1.2.1.3 Accounting for construction using machines 17

1.2.2 Accounting for losses in construction 19

1.2.2.1 Damage due to destroy and re-do the work 19

1.2.2.2 Losses due to discontinue production 20

1.2.3 General accounting for assembling costs of production 21

1.2.3.1 General accounting for assembling costs of production 21

1.2.3.2.Objects and methods for calculating cost of construction products 22

CHAPTER 2.CURRENT STATUS OF ACCOUNTING PROCEDURE IN ASSEMBLING PRODUCTION COST AND CALCULATING COST OF CONSTRUCTION PRODUCTS AT NAM PHUONG COMPANY 24

2.1 GENERAL ABOUT NAM PHUONG CONSTRUCTION JOINT STOCK COMPANY (CJSC) 24

2.1.1 The formation and development of the company 24

2.1.2 Functions and duties of the company 25

2.1.3 Features of the production process of the company 25

2.1.4 Organizational structure of the company 27

2.1.4.1 Organization map management apparatus in the company 27

2.1.4.2 Organizational Structure 27

2.1.4.2 Organizational Structure 28

2.1.5 Characteristics production process technology products at NamPhuong CJSC 30

2.1.5.1 Manufacturing process diagram of Nam Phuong CJSC 30

2.1.5.2 The manufacturing process Nam Phuong CJSC 30

2.1.6 Accounting policies applied in the company 31

2.1.7 Accounting form at the company 31

2.1.7.1 The order for book 31

2.1.7.2 Accounting form 32

2.2 The situation of accounting for assembling production cost and calculating cost of construction products at Nam Phuong CJSC 33

2.2.1 Objects of accounting for assembling production cost and calculating cost of construction products at Nam Phuong CJSC 33

2.2.1.1 Objects of accounting for assembling production cost at Nam Phuong CJSC 33

2.2.1.2 The method of calculating the cost of products 34

2.2.2 Accounting for assembling direct material cost 34

2.2.2.1 Contents 34

2.2.2.2 Documents used 35

2.2.2.3 Accounting methods 35

2.2.3 Accounting for assembling direct labor cost 45

2.2.3.1 Contents 45

2.2.3.2 Documents used 45

2.2.3.3 Accounting methods 45

2.2.4 Accounting for assembling construction machines cost 49

2.2.4.1 Contents 49

2.2.4.2 Documents used 50

2.2.4.3 Accounting methods 50

2.2.5 Accounting for assembling general production cost 59

2.2.5.1 Contents 59

2.2.5.2 Documents used 59

2.2.5.3 Accounting methods 59

2.2.6 General accounting for assembling production cost and calculating cost of construction products 66

2.2.6.1 General accounting for assembling production cost 66

2.2.6.2 Evaluated unfinish production costs in ending of period 67 CHAPTER 3.SOME FEEDBACK CONSTRUCTION AND SUGGESTION TO FUTHER IMPROVE THE ORGANIZATION OF ACCOUNTING FOR

ASSEMBLING PRODUCTION COST AND CALCULATING COST OF

CONSTRUCTION PRODUCTS AT NAM PHUONG CJSC 68

3.1 Reviews and evaluate the accounting for assembling production cost and calculating cost of construction products at Nam Phuong CJSC 68

3.1.1 Advantages 68

3.1.2 Restrict 69

3.2 Some feedback and suggestion to futher improve the organization of accounting for assembling production cost and calculating cost of construction products 70

3.2.1 Organizing vouchers 70

3.2.2 Improve efficiency work on computer 70

3.2.3 Completing accounting for assembling production cost and calculating cost of construction products 71

3.2.3.1 Direct materials cost 71

3.2.3.3 Construction machines costs 72

3.2.3.4 General production costs 72

BIBLIOGRAPHY 74

In the current development process, construction in general and specificconstruction in particular have an important role and make a tremendous impact oneconomic activity since they use huge social capital to create material facilities forthe national economy Our country is integrating into the general world economy,and it is totally converted to open economy, which creates more opportunities forthe company but also numerous challenges In current economy, businesses have toassert their prestige, quality and construction cost in order to survive and develop

To enhance the sense of initiative, creativity and cost management responsibilityrequires complete and accurate expenses calculation paid in the manufacturingprocess so as to ensure proper and reasonable product price The question is how tomanage capital efficiently, overcoming wasting, loss of capital in conditions ofproduction in capital construction spent many stages such as design, projectplanning, construction and acceptance…

Nam Phuong Construction Joint Stock Company (CJSC) that has long timeoperation experience is integrating into the market, and privatizing so the companyhas some specific difficulties about capital, technology, human resources andemployment Therefore, Nam Phuong has always focused on the management ofproduction costs to achieve the lower cost than expected, but it will not affect thequality of the project, so they can improve current business efficiency and meethigh social demanding The company always follows the motto "the lowest cost, thehighest efficiency" Then, costs information is very important in constructionplanning, decision management and cost control

Thereby, I choose the subject "Accounting for assembling production costand calculating construction product cost in Nam Phuong Construction Joint StockCompany” by my experiences during the time I trained in this company along withknowledge I have learned at school

2 Research objective

- Research and clarify the problem about accounting theory of assemblingproduction cost and calculating product price in construction business

- Learn about situation of product cost department in Nam Phuong CJSC

- Analysis and evaluate the cost decisions in order to give some feedbacks andsuggestions to improve the cost department activity

- Objects research: The research project gathering on accounting forassembling production cost and calculating cost of construction products atNam Phuong CJSC

Research topics includes following contents:

- Rationale and overview on accounting documents gathering productioncosts and cost of construction products

- To reflect the actual situation on accounting set production costs andproduct prices

- The rating and provide solutions for production cost accounting andproduct cost of construction

4.2 Method of study

+ Study method document: By the documents such as books, newspapers,internet, library, school to learn, synthesis of the rationale and methods tomanage production costs

+ Method is observation, interview: Observe, learn to ask the companyaccounting department to collect the data related to the topic

+ Document collection method: Collect document book report productioncosts and in cost of works other related the documents should be handled

+ Data Processing Method: Conducting analysis to compare, compare andsynthesize information from the data collected in the company to evaluateand find a number of measures to complete the work over the next gatheringcomputing cost and construction cost of products.

There are some other methods such as statistical methods, methods ofaccounting

5 The meaning of scientic and reality

5.1.The meaning of scientic

Assembling production cost and calculating cost of construction ingeneral and specific construction are concerned by many traders The cost ofproducts is critical in maximizing the profitability of the business Sogathering production costs and accurately calculate product costs by costaccounting work have a great effect on the production decisions of thebusiness The theme is to contribute to codify the basic theoretical issues ofassembling production cost and calculating cost of construction

5.2 The meaning of reality

Based on actual survey, analyze, evaluate, specify the need to promote theadvantages and limitations that need research, the recommendations that thesubject made to contribute to the improvement of accountants gatheringspending cost and the cost of products at the joint-stock and commercialconstruction Nam Phuong Company Besides helping the managers have thecorrect view of the situation capable business situation of their business tolearn from the research that launched the solution is improving thetechnology innovation production, organization methods to save costs usingpurposeful, lower cost products to increase the competitiveness of thebusiness and profit maximization

6 Structure of the topic

Besides the introduction and conclusion, topics of three chapters:

Chapter 1: Theory bases accounting for assembling production cost andcalculating cost of construction products

Chapter 2: Current status of accounting procedure in assembling productioncost and calculating cost of construction products at Nam Phuong CJSC.Chapter 3: Some feedback and suggestion to further improve theorganization of accounting for assembling production cost and calculatingcost of construction product at Nam Phuong CJSC.

CHAPTER 1

THEORY BASES ACCOUNTING FOR ASSEMBLING PRODUCTION COST AND CALCULATING COST OF CONSTRUCTION PRODUCTS 1.1 The scientific basis of accounting for assembling production cost and calculating cost of construction products.

1.1.1 Characteristics of construction enterprises affect accounting work

gathers cost and construction cost of products

1.1.1.1 Characteristics of construction products

Basic construction material industry is an important industrial nature toreproduce fixed assets for all sectors of the national economy, creatingmaterial and technical basis for society, increased economic potentialstrength, defense, and contributing to the process of industrialization andmodernization of the country Therefore, good management and correctaccounting of all costs of production and product costs have particularlyimportant implications However, construction sector also has its owncharacteristics that govern accounting work gathering production costs andproduct prices These characteristics are:

Construction products are constructionsand architectures of infrastructurefacilities of the national economy scale and high value complex structural,long-term use of time So , the organization of management and accountingnecessary to have the design estimates, construction is established for eachwork, construction items In the construction and installation process toregularly compare the performance test estimate cost, find the cause ofexcess, loss estimates and evaluate business performance on the basis ofestimates as a measure

Construction products fixed at the production places also the productionconditions (motorcycles, construction equipment, laborers .) have tomoving in location of the product Other hand, construction activities usuallyconducted outdoors so influenced by the natural conditions, weather This

characteristic makes management work, use and accounting of assets andmaterials is complex, loss or damage to increase production costs Besides,the production cycles of the construction units are usually very long, regularexpenses incurred while revenue generated only at each given time.Therefore, the period in the unit cost of construction is usually determinedaccording to the production period.

Organization of production in the construction enterprises in our countrynow popular compact presumptive works, construction items, work mass orunits internal enterprise (and teams, factories ) In the package price, notonly wages but also cover the costs of materials, tools, construction tools, thedepartment's general expenses contractor

Prices of construction works do not include the value of equipment itself byinvestors brought in to install that only includes the cost of constructionenterprises by spending related to the construction and installation Prices ofconstruction work and installation of structures including structural materialvalue and the value attached devices such as sanitary facilities, ventilation,heating equipment, air conditioners, transmission equipment

1.1.1.2 The tasks of accounting for assembling production cost and calculating cost of construction products.

To accomplish the target production cost to lower cost products, the

construction business unit use different measures to produce Standing onaspect of management, need to know the source or path of its formation,content composition of cost, so that knows what the underlying cause, thespecific factors were increases or decreases cost and only on that basis, theproposed new management measures are needed to limit the impact ofeliminating the negative factors so impact and promote the influence ofpositive factors , exploiting the ability, potential in the management and use

of materials, labor and capital

One of the important measures and indispensable, not to mention measures tomanage accounting tool So have to calculate accurate and full cost of

production on the new costs that ensure the use of accounting work inproduction management Therefore the primary task of accounting workproduction cost accounting and product cost of construction is: Determineexactly who gathering production costs and costing object suit conditions thereality of the business, satisfying the requirements of management in place,applying the cost method of accounting for production and pricing methodsinto a scientific and rational.

Management need to provide timely, accurate and complete data:

- Reflecting the full, accurate and timely manner all expenses actuallyincurred for each object

- Checking the cost of materials, labor, cost of construction machines andother costs, timely detection of differences compared to the norm, otherexpenses unplanned, Clauses damage, loss or damage in production fromthat proposed measures to prevent and correct promptly

- Perform analysis on the implementation of cost estimates to producerecommendations for corporate governance decisions accordingly

- Organization gathers allocated cost of production of each type of object inaccordance with the accounting cost of production was determined by theappropriate method, determine the correct value at maturity unfinishedproducts

1.1.2 Definition and classification construction product costs

1.1.2.1 Definitions construction product costs

The production process of the construction enterprises is a process thatbusinesses frequently must invest in different types of costs to achieve thepurpose is to create product corresponding mass, which is the process oftransformation construction materials into products under the impact ofmachinery with human labor, or that is the conversion of the material factors

of labor and objects of labor (costs related to reification labor) under theimpact of labor purposes, (labor wasted life) through the construction process

will become product building Complete waste are expressed in terms ofsome value, which is the cost of production.

1.1.2.2 Classification of construction product costs

The cost of many types of enterprises, many items in the nature, Variousapplication So to cater for management work accounting as well asproduction costs are classified according to the following criteria:

a Classification construction product costs according to the economic content

- Cost of materials: This includes the full value of raw materials, of spareparts, tools and supplies used in production and export business in thereporting period

- Labor costs: Includes all expenses paid to employees (permanent ortemporary) on salaries, wages and allowances, allowances of wage nature ofthe reporting period before except deduction

- Depreciation fixed assets: The entire amount of depreciation of fixed assetsused for production activities of the enterprise

- Cost of services purchased from outside: It's all of the money thatenterprises pay for hired services such as electricity, water, telephone postalmoney for production and business activities of enterprises

- Other expenses with money: As money for custumer, conference expenses,advertising

b Classification construction product costs according to the purpose and utility of cost

- Cost of direct materials: Include the cost of raw materials, materials andraw materials used for the direct purpose of product

- The cost of direct labor: Includes salaries and allowances as the salary paid

to the workers directly involved in the production of construction product

- Costs for use of construction machines: Includes the cost of constructionmachines to perform the construction and installation mass by machine.Costs used construction machines including recurrent costs and temporarycosts

+ Regular expenses for the operation of construction machines are

costs incurred when using the machine every day, including labor costmachine control, serve machines, cost of raw materials, materials, tool costsand tools, cost depreciation, cost of services purchased and other expenses incash

+ Cost temporary costs to support the use of the machine, includingthe cost of major repairs and construction machines, the cost temporaryworks for construction machines (tents, tents, trays, rails runningmachine ), maintenance cost, temporary the cost of the machine mayarise before then amortized into TK 623 Or arising after but must pre-calculated into the cost of construction machines in the period (due torelating to the actual use of construction machinery in the period) This casemust advance an expense (recorded on account 352)

-Construction product cost: The cost reflects serving and management team,the construction site, including team management staff salaries anddeductions for social insurance, unemployment insurance, labor union feepayable on the wages of workers management team members, workersconstruction machine control, production workers directly under the Labourlist indefinite term business, depreciation fixed assets to operating shared thelead and other costs related

This classification helps to provide data for the calculation of the production

of construction product, the analysis of the implementation plan costs andexamine the implementation of the cost of production, the establishmentperiod after the plan to lower the cost of products

c Classification of construction product costs according to the relationship with product mass of work, production workers in the period

- Variable costs (variable costs): As the cost can vary in terms of totalnumbers,

the correlation is proportional to the change in mass produced productsduring the period (cost of direct materials, labor costs direct)

- Fixed costs (the cost) is the cost of not changing the total change whenproduct production mass during the period (depreciation fixed assetsaccording to the average method, the cost of lighting )

- Cost mixed: As costs which itself consists of elements of variable costs andfixed costs If operating at a fundamental level, the cost of the mixture showsthe characteristics of the charge If the extent that it shows the character ofvariable costs Costs usually mixtures include: general production expenses,selling expenses, general and administrative costs now

Classification on the basis of helping enterprises to plan check costs,determine breakeven points, analyze the situation cost savings, finddirections improve quality and lower product cost

d Classification of construction product costs under the cost method of gathering and the relationship with the subject costs.

- Direct costs: are costs directly related to the production of a product directlyperform a work service, certain services

- Indirect costs: Costs related to manufacturing products, more work done forthe service

e Classification of production costs according to the content of the cost structure.

- Cost unique: As the costs of a constituent

- Cost aggregate: As different elements regrouped same uses as generalproduction costs

1.1.3 Definition and classification cost of construction products

1.1.3.1 Definition cost of construction products

Construction cost of products is represented by the entire amount of wasteamounts of living labor and reification of labor incurred in the productionprocess related to the volume of construction has been completed The nature

of the product cost is the shifting values of the cost elements in productconstruction completed Thus, there are two functional costs mainly offsetthe cost and pricing functions

1.1.3.2 Classification cost of construction products

Estimated cost: The entire estimated cost to complete the construction andinstallation volume Cost estimates are determined on the basis of the normsunder the approved design and price brackets prescribed basic constructionunit price applicable to each region, each locality, the competent authoritiesissued

The estimate cost = Estimate value - Profit margin

In particular, the value estimates is worth paying for the completedconstruction mass according to the estimates Value estimates are the basisfor planning the allocation of capital for infrastructure, as a basis fordetermining the effectiveness of the design, as well as a basis to examine theimplementation of the plan workload and determine economic performance

of construction enterprises

Price plans: As prices are determined from the conditions and specificcharacteristics of a construction enterprises in a certain period of the plan.Based on the cost estimates and based on specific conditions, the actualproduction capacity of the enterprise business in the accounting period, theenterprises themselves develop economic and technical norms and determineunit prices necessary waste, to construction of a planning period

Plan costs = Estimate cost - Estimate lower cost 1.1.4 The relationship between construction product costs and cost of construction products

There is a close relationship between production cost of products inclose relationship with each other in the manufacturing process to createproducts of construction They are two different aspects of the productionprocess Production costs reflect the consumption of the production cost ofproducts also reflect the results of production Production costs consist oflabor costs related to labor and reification life that enterprises spent tomanufacture product Product price is calculated on the basis of the cost hasbeen gathering and the number of completed products

However, there are manyn differents between production costs and productprices:

Production costs only those costs incurred in a period without regard

to the product have been formed or not And the cost of the aggregateproduct manufacturing costs related to mass finished product or workconstruction items were investors accept acceptance and payment

Production costs only for a month, a quarter, a year also product costsrelated to the production cost of the switch to the previous period, the cost ofproduction of this period and the cost of production of this period to switch

to subsequent period

Production costs not associated with the number and categories offinished product In contrast, the cost of products is always associated withthe number and categories of finished product

The relationship between production costs and product prices are expressedthrough the following formula:

a measure to manage costs

BeginningProduction cost

+

Costs inPeriod

EndingProduction cost

-Total

Cost

=

-Through data accounting of assembling for construction costs, managersknow the cost and the actual cost of the work or construction items ofproduction and business processes Through which administrators cananalyze the implementation of product plan, the use of labor, materials,capital or wasting savings from which to take measures to reduce prices andmake decisions suit production and business activities of enterprises Lowerproduct costs still ensure quality is an important condition for businessenterprises in the market

1.1.5.2 Meaning of accounting for assembling production cost and calculating cost

It is one of important conditions for enterprises to create a competitiveadvantage Besides, the cost of products is also the basis for theproductselling price, the basis of assessment of internal economicaccounting, cost analysis, and also as a basis for determining business results

1.2 Accounting for assembling production cost and calculating cost of construction products

1.2.1 Accounting for assembling production cost

1.2.1.1 Accounting for direct materials cost

a Definition

Cost is direct materials cost of these types of materials constituting theproduct, great value and can determine a clear separation for each product.The cost of materials directly include the costs of the main raw materials,auxiliary materials, components or separated parts, recyclable materialsparticipating entities constituting construction product

Distribution criteria are often used to allocate costs according to the norms,the cost of the plan, product production mass.

The allocation formula is as follows:

Cost of materials Distribution criteria x Total cost materials need toallocate

for each object = of each object Total choose criteria for forallocation

Part of raw material costs, direct materials exceeds normal levels is notcalculated into of products and services that must recorded into 632 "Cost ofgoods"

b Using account 621 "Cost of raw materials, direct materials"

The structure and content reflects accounts:

Debit 621 Credit

- Assembling direct materials The credits reduce the

Incurred in the period direct materials cost

- Account 621 don’t have ending balance

- Account 621 must be open details for each object used to transfer the costsperiod-end, actual costing of each object works

c Documents used

Sales invoices, value-added invoices, warehousing bills, an invoice, awritten request advance payment, payment bills, bills of sale Materials canbuy the warehousing or can export the directly to projects In case the self-construction units to buy supplies, the original documents are invoice-cum-delivery by the seller

Invoice and related documents such as invoices and shippingdocuments form was transferred to the accounting department as accountingdata

d Accounting methods

Figure 1.1: Accounting for assembling direct materials cost

1.2.1.2 Accounting for direct labor costs

a Definition

Direct labor costs include wages, salaries allowances, meal allowancespaid to shift workers directly produce products or perform work directlyfor services, the salary deductions charged to direct labor costs (socialinsurance, health insurance and union funds)

Social insurance, health insurance, labor union fee, unemploymentcalculated on the wage fund of workers directly involved in constructionactivity deductions are reflected in account 627 "general productioncosts"

622 to open details to the objects set the cost of production and business.Part direct labor costs in excess of normal levels are not counted into the

Act 152,153Act 111,112, 331

Act 133(1)

Act 632Act 141(1413)

Act 111,112,152

Output raw materials uses for project

buy raw materials and transfer them directly to manufacturing process

In the eding period, record

Into A/C:”Unfinished production cost”

cost of products and services that must be transferred immediately intoAccount 632 "Cost of good sold".

b Account using

Account 622 "Direct labor cost"

Structure of account

- Account 622 don’t have ending balance

- Account 622 open account details for each object set production costs

c Documents used

Salary payments table, timesheets, salary allocation table

d Accounting methods

- Gather direct labor costs

incurred during the period

Debit

- Ending transferred direct labor costs account 154 for calculating product costs

- Costs and market research excesstransferred to the capital cost

154 622

335 334

transfer the costs

cash accrualssabbatical wagesSalary

wages paid to production workers

wages paid to laborers hired from outside

salaries and shift meal wages of employees

production

632Direct labor costs in excess of normalvalue payment

Chart 1.2: Accounting for assembling production cost.

1.2.1.3 Accounting for construction using machines

a Defintion

In construction production, large-scale, intensity costruction is high.Thus human labor sometimes does not provide for the demand of the job.Stems from the fact, using construction machine in construction makes higheconomic

- The credits reduce the cost of construction machines

- Ending the transfer construction machines using cost in the production costs of unfinished business

- Construction machine cost using excess transferred to the capital cost

Chart 1.3: Accounting for construction using machine

The company does not hold a separate construction machinery or ofconstruction machines held separately but held separate accounting forthe of construction machines, the entire cost of the machine is accountedfor using the following diagram:

154 623

335 334

632

214

Dep Of construction machines

153

transfer the costs

transfer the costsexceeded

Cost tools and supplies for of construction

machines

cost of raw materials

621, 622, 627

Related accounts

allocate coststransfer the costs

to calculate costs

collection of actual

costs incurred

Chart 1.4: Accounting for construction using machine case don’t have

separate construction machine

1.2.2 Accounting for losses in construction

1.2.2.1 Damage due to destroy and re-do the work

a Characteristics of working out losses in manufacturing construction

During construction process, there might be some work quantities or parts ofwork that have to be removed and redone to ensure the quality of the project Thatmight happen because of natural disasters, fires, the fault of either contractor (partyA) due to modifying design of the project or construction implementation party(Party B) due to unreasonable production organization, lax constructionmanagement, workers’technique faulty, or other external causes We should take theqppropritate corrective measures depend on the damage level or the causes ofdamage

b Accounting methods

- At the time of determining the construction product cost had completedand handed over, based on the value of damage due to destroy and re-do thework is determined by the cost norms, accountant solves is as follow:

- Recovery of scrap value, reduced losses

DR 111, 152

CR 154

- In case the damage is made by the principal (Party A), construction firm

is not respon for the damage and view as has done the work, determining thecost of construction products was completed as follows:

+ Identify the damage was calculated to unusual cost:

DR 811

CR 154+ Identify the damage not yet determined the cause, waiting toresolve, accountant records:

DR 138 (1381) - Assets Pending

CR 154

1.2.2.2 Losses due to discontinue production

a Characteristics of losses due to discontinue production

Losses due to discontinue production is paused work becauseobjectivity reasons or subjective reasons Stop work can due to weather, theseason or due to supply material, construction machine and other causes

The losses due to discontinue production include: Wages payable, fueland material values

Adjusted the different:

+ If accrual cost excess cost incurred actual, to add cost:

DR 622, 623, 627, 642 (extract supplemented by thedifference)

CR 335+ If cost incurred actual excess accrual cost, to reversal cost:

DR 335

CR 622, 623, 627, 642 (reversed by the difference)

1.2.3 General accounting for assembling costs of production.

1.2.3.1 General accounting for assembling costs of production.

- Transfer the costs direct

material, direct labor costs, costs of construction machines

Chart 1.6: General accounting for assembling costs of production

1.2.3.2.Objects and methods for calculating cost of construction products

a Objects for calculating cost of construction products

Object is the result of the manufacturing process should be to serve the

requirements of management In production now, the object could be

products, sell products, work completed during the manufacturing process

b Calculating cost of construction products method

After a review of all of the production costs incurred in the period under

objects cost production plan has identified and evaluated the progress,

conduct accounting product As the price of Here are some methods of

costing some types mainly:

* The direct method (simple method): This method is applicable to object

instances set production costs are also subjct to price calculation

Finished

product

Beginning of the period production cost

+ Total costs inperiod

-Ending of the period production costs unfinished

154

VAT tax

Collecting scrap

Finished products Not yet transfer Finished products

Finished good transfer to investor

 Total cost method: Applies to businesses that process productsmanufacturing is done in many parts production, many constructionphase, the subjects are works As the price of work items completed.DDK + C1 + Z = Cn + + DCK

Inside:

Z is the actual cost of the whole project items

DDK, the cost of unfinished DCK is the beginning and the end of periodC1, Cn is the production cost of each phase

CHAPTER 2 CURRENT STATUS OF ACCOUNTING PROCEDURE IN ASSEMBLING PRODUCTION COST AND CALCULATING COST OF CONSTRUCTION

PRODUCTS AT NAM PHUONG COMPANY 2.1 GENERAL ABOUT NAM PHUONG CONSTRUCTION JOINT STOCK COMPANY (CJSC)

2.1.1 The formation and development of the company.

Company name: NAM PHUONG CONSTRUCTION JOINT STOCK COMPANYBusiness name: NAM PHUONG COMPANY

Short name: NAMPHUONGCO

Address: 26 Thai Thi Boi, Chinh Gian wards, Thanh Khe district, Da Nang

Phone: 0511.2211.535

Tax code: 0400484316

Account number: 106 10 000 007 375

Bank: Quoc Dan bank

Business registration certificate: Due facility investment plans the city of Danang on08/03/2005

- Construction of houses of all kinds

Details: Construction of civil engineering industry

- Trading in steel, materials, in metal electrical appliances, buildingmaterials

In words: Twenty billion

Par value of shares: 1,000,000

Total number of shares: 20,000

Book shares were offered: 0

The representatives at law of the company: Mr Nguyen Huu Hai

2.1.2 Functions and duties of the company

Based on business registration certificate, Nam Phuong CJSC has functionsand tasks such as:

- Activities correctly major had signed

- Using capital and resources of the company is efficient

- Comply implemently policies of government issued

- Strictly implement all commitments, contracts that the company has signed

- Asset management, capital management as well as staff management andemployees Implementing the principle of distribution according to labor, ensuresocial justice and care for the lives of employees, organizations foster advancedprofessional qualifications, working capacity of technical staff, officersmanagement

- Implement the protection of labor and safety in production

2.1.3 Features of the production process of the company

Production process technology is the production line of constuction products.Each type of business has one type of product will have its own process technology

of this kind of products Joint Stock Company and commercial constructioncompany Southern bidding for construction projects The construction works areoften large scale, widely bring focus features, continuous process technology to the

company's production is not only the machinery or production line technology thatincludes both the public bidding process, construction, handover the building acontinuous way.

The stages of the construction process:

Diagram 1: The stages of construction

2.1.4 Organizational structure of the company

2.1.4.1 Organization map management apparatus in the company

Files of bidders

Bidding estimate Signing the economy contract

Construct the construction

Checking and acceptance eachstage

Put the works to use

Technical Department

BusinessDepartment

Officesupplies

2.1.4.2 Organizational Structure

a The organization chart of the accounting apparatus:

b Functions and duties of the members

 Chief Accountant: As the head of Financial - before accounting firmresponsible for the organization of accounting within the entirecompany The mission of the organization is the chief accountant ofaccounting work done under the current regime, signing documentsand ledger book and directing the work of the professional inspection,inspection of the use of funds , participated in the signing of economiccontracts, financial planning company

 Tax Accountant: Responsible for monitoring, recording and reflectingthe tax-related activities

 Accounting liabilities: Tracking the debts of the unit to the outside,and between internal state together

 Stores account: Implement monitoring, recording and accounting ofthe right type, quantity and price of supplies

Accounting

of fixed assets

Stores Account

Accountant liabilities

Accounting set production cost and price

Accounti

ng and salaríe payment

Trea-Notes: Relations directing

Functional relationship

 Accounting of fixed assets: Subscribe to the volatility of the fixedassets and amortized accordingly, and keep track of the transactionsrelated to bank deposit and credit transactions.

 Accounting and salary payment: To monitor the collection andspending of money in shares, payment settlement advances in the unit

as well as customers Payroll and allocate salaries to employees,officers and employees in the company

 Accounting set production costs and price: Synthesis allocated costs,actual cost of the work or works were completed and identifiedbusiness results in the period Books simultaneously aggregateeconomic transactions arising at the unit, the accounting statementssubmitted to higher levels periodically

 Accounting teams: Have functional set of relevant documents in theregular crews of 15 days or 1 month sent the company's accountingdepartment for accounting

 Treasurer: To be responsible for managing the money in their funds, acash flow, defined cash balance, fund balance reporting daily orperiodically

2.1.5 Characteristics production process technology products at NamPhuong CJSC

2.1.5.1 Manufacturing process diagram of Nam Phuong CJSC

Chart 2.3: Production process of Nam Phuong CJSC

2.1.5.2 The manufacturing process Nam Phuong CJSC

ConstructionWinningJoin in bidding

Project hand overAcceptance test of works

Step 2: To start construction, the construction process is conducted in stages,technical stops Each time finish one stage re-conducting test

Step 3: Finishing project, handing over the project to the investors put into use

2.1.6 Accounting policies applied in the company

Nam Phuong CJSC using voucher system and the system of financialaccounts issued by Decision 48/2006-Decision-Ministry of Finance on 14/09/2006,the finance minister

Organizational forms of accounting books: Forms recording vouchers tomonitor its transactions incurred

The monetary unit used in accounting: Viet Nam Dong

Principles for determining the original cost of fixed assets: The fixed assetsinclude cost and related expenses (transportation, installation, commissioning )

Accounting Principles inventory: The the regular inventory method andinventory costs according to the weighted average method

Accounting voucher system: VAT invoice, receipt, payment voucher,warehousing bills, delivery bill, test records, Cash, bank deposits, advancepayments, import and export of goods and supplies

Accounting system: accounting books in detail, general accounting recordsPrinciples and methods of conversion to other currencies: The foreigncurrency into USD at the exchange rate of the bank statistics, which are convertibleinto USD at the exchange rate accounted VND

VAT payment methods: By the deduction method

Accounting reporting system: accounting balance sheet, statement ofoperations, cash flow statement, notes to the financial statements and accountingreports to meet the requirements of public management Mouse Accountingenterprise value-added tax the deduction method

2.1.7 Accounting form at the company

2.1.7.1 The order for book

The Company applies accounting software "Avin" working onaccounting

The order for book in the form of accounting on the computer:

Ghi chú: Daily data entry

Book printing, report end month, end year

- General

- Detail

- Financial reports

- Management accounting reports

ACCOUNTING SOFWARE

Sum table same

Accounting voucher type.

Accounting

Vouchers

Notes: Recorded daily or periodical

Record end month

To illustrate the process of accounting for assembling production cost

at Nam Phhuong CJSC, I would like to quote material production costaccounting and cost apartment project low income of resettlement area Phuoc

Ly 01 in the first quarter of 2015 for my topic

Registers

recording

vouchers

Accounting books or card details

LEDGER