Accounting for production costs and product prices at Toan Thang Joint Stock Company - 1

DO NGOC DUNG

PRODUCTION COST ACCOUNTING AND PRODUCT COST AT

TOAN THANG JOINT STOCK COMPANY

MASTER'S THESIS IN ACCOUNTING

CODE: 834 03 01

SCIENTIFIC INSTRUCTOR: ASSOCIATE PROFESSOR, DR. PHAM DUC CUONG

HANOI, 2021

I hereby certify that the Master's thesis " Production cost accounting and product pricing at Toan Thang Joint Stock Company " is an independent research work conducted by the author under the guidance of Associate Professor, Dr. Pham Duc Cuong . The thesis has not been published in any research work. The data and content presented in the thesis are honest, have clear and valid sources and ensure compliance with regulations on intellectual property protection.

I am responsible for the entire content of this master's thesis.

Thesis author

Do Ngoc Dung

Through the time of theoretical and practical research, the author has completed the Master's thesis in accounting with the topic "Accounting for production costs and product prices at Toan Thang Joint Stock Company".

The author would like to express his sincere thanks and deepest gratitude to Associate Professor, Dr. Pham Duc Cuong for his dedicated guidance, care, help, guidance and valuable comments to help the author complete this thesis.

The author would also like to express his gratitude to the entire Board of Directors and all the teachers of the Trade Union University for creating the best environment and time for the author to study at the school during the course.

Finally, the author would like to express his gratitude to his family members, brothers and friends - those who always encourage and help the author in all difficult circumstances.

In the process of writing the thesis, it is inevitable that there will be shortcomings, so the author hopes to receive comments from teachers to improve the thesis.

Thank you very much!

Commitment Acknowledgements Table of Contents

List of tables and diagrams

INTRODUCTION 1

1. Urgency of the topic 1

2. Overview of research status related to topic 3

3. Research purpose and tasks 4

4. Research object and scope 5

5. Research methods 5

6. Contributions of research topic 6

7. Structure of the thesis 6

Chapter 1. THEORETICAL BASIS OF PRODUCTION COST ACCOUNTING AND PRODUCT COST IN MANUFACTURING ENTERPRISES 8

1.1. General overview of production costs and product prices 8

1.1.1. Production costs 8

1.1.2. Relationship between production costs and product prices 14

1.2. Objects, methods of collecting production costs and objects of calculating product costs 15

1.2.1. Objects and methods of collecting production costs 15

1.2.2. Product cost object 17

1.3. Sequence of accounting for production costs and product prices in manufacturing enterprises 18

1.3.1. Accounting for direct material costs 18

1.3.2. Direct labor cost accounting 21

1.3.3. General manufacturing cost accounting 22

1.3.4. Summary of production costs, inventory and evaluation of unfinished products 24

1.3.5. Product costing 27

1.4. Accounting standards related to production costs and product prices 34

1.4.1. Standard No. 01 (VAS01) General Standard 34

1.4.2. Standard No. 02 (VAS02) Inventory Accounting 35

1.4.3. Standard No. 03 (VAS 03) Fixed assets 37

1.4.4. Standard No. 16 (VAS 16) Borrowing costs 38

Chapter 1 Summary 41

Chapter 2. PRODUCTION COST ACCOUNTING AND PRODUCT COST AT TOAN THANG JOINT STOCK COMPANY 42

2.1. Introduction to Toan Thang Joint Stock Company 42

2.1.1. Formation and development process 42

2.1.2. Characteristics of business activities 44

2.1.3. Characteristics of management organization 46

2.1.4. Some basic characteristics of the accounting system 48

2.2. Objects of production cost accounting, objects of cost calculation, cost calculation period 52

2.2.1. Objects of production cost accounting 52

2.2.2. Costing object 54

2.3. Current status of production cost accounting and product pricing at Toan Thang Joint Stock Company 55

2.3.1. Accounting for direct material costs 55

2.3.2. Direct labor cost accounting 58

2.3.3. General manufacturing cost accounting 62

2.3.4. General accounting of production costs, inventory, evaluation of unfinished products65 2.3.5. Calculating product cost 66

2.4. Evaluation of production cost accounting and product pricing at Toan Thang 67 Joint Stock Company

2.4.1. Advantages achieved 67

2.4.2. Limitations and causes 70

Chapter 2 Summary 71

Chapter 3. SOLUTIONS TO IMPROVE PRODUCTION COST ACCOUNTING AND PRODUCT COST AT TOAN THANG JOINT STOCK COMPANY 72

3.1. Objectives and directions for perfecting production cost accounting and product pricing at Toan Thang Joint Stock Company 72

3.1.1. Target 72

3.1.2. Direction 73

3.2. Some solutions to improve production cost accounting and product pricing at Toan Thang Joint Stock Company from the perspective of financial accounting 74

3.2.1. Perfecting the technological chain 74

3.2.2. Completion of cost calculation method 75

3.2.3. Perfecting production cost reduction, lowering product price 80

3.3. Conditions for completing the solution 81

3.3.1. On the state side 81

3.3.2. On the business side 82

Chapter 3 Summary 84

CONCLUSION 85

LIST OF REFERENCES 87

LIST OF ABBREVIATIONS

Abbreviations

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Table 2.1. Material standards for 1500l plastic tank 53

Table 3.1. Collection of fan production costs 76

Table 3.2. Calculating the cost of finished products of mechanical workshop 77

Table 3.3. Calculating the cost of finished products sold in paint workshop 78

Table 3.4. Calculating the cost of finished products in the assembly workshop 79

Diagram 2.1. Production organization 44

Diagram 2.2. Plastic production process 45

Diagram 2.3. Production process of INOX 45 products

Diagram 2.4. Organizational structure model of Toan Thang Joint Stock Company 46

Diagram 2.5. Organization of accounting apparatus 48

Diagram 2.6. Accounting process applied at Company 50

Diagram 2.7. Process of circulating documents for direct material costs. 57 Diagram 2.8. Process of circulating documents for direct labor costs. 60