Figure 2.4b: Screen for performing cost transfer entries
Figure 2.4c:Screen for performing cost transfer entries
Extract of transactions related to raw material costs:
- Based on the warehouse delivery note PX16 (Appendix 1) prepared by the material accountant on November 10, 2012 and transferred to the warehouse keeper, deliver raw materials such as: cement, stone, sand, ... and other materials to produce Centrifugal culverts diameter 1500 H30.
Accounting:
Debit account 621: 109,778,577
Credit account 1521: 109,778,577
- Based on the warehouse delivery note PX39 (Appendix 2) prepared by the material accountant on November 24, 2012, deliver raw materials such as: cement, stone, sand,... and other materials to produce Centrifugal culvert diameter 1500 H30.
Accounting:
Debit account 621: 111,541,578
Credit account 1521: 111,541,578
At the end of the month, the accountant collects the actual raw material costs incurred for each product, transfers the raw material costs to the unfinished production cost account to calculate the product cost. For the transfer transactions, the accountant creates a general accounting voucher:
HUNG VUONG CONCRETE FACTORY BRANCH OF HUNG VUONG CONSTRUCTION CO., LTD.
Zone IV, Co Chien Industrial Line, Long Ho, Vinh Long
GENERAL ACCOUNTING VOUCHER
November 30, 2012 Vote number 01
Content
Account | The case | Debt generation | Arising has | |
Transfer 621 to 154 Transfer 621 to 154 | 154 621 | C03 C03 | 221,320,155 | 221,320,155 |
Add: | 221,320,155 | 221,320,155 | ||
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- Then record in the General Journal (Appendix 3):
HUNG VUONG CONCRETE FACTORY
Hung Vuong Construction Company Limited
IV CN Line Co Chien - Long Ho Vinh Long
GENERAL LOG
Document
Interpretation | Account | Number of occurrences | |||
Day | Number | In debt | Have | ||
11/10/2012 | PX16 | Centrifugal Sewer 1500 H30 | 621 | 109,778,577 | 0 |
11/10/2012 | PX16 | Centrifugal Sewer 1500 H30 | 1521 | 0 | 109,778,577 |
November 24, 2012 | PX39 | Centrifugal Sewer 1500 H30 | 621 | 111,541,578 | 0 |
November 24, 2012 | PX39 | Centrifugal Sewer 1500 H30 | 1521 | 0 | 111,541,578 |
… | … | … | … | … | … |
November 30, 2012 | CP11 Technical Training | Transfer entry cost to 154 | 154 | 3,732,737,510 | 0 |
November 30, 2012 | CP11 Technical Training | Transfer entry cost to 154 | 621 | 0 | 3,732,737,510 |
TOTAL | |||||
Total cost of raw materials used for the production of centrifugal culverts of diameter 1500 H30 incurred in November 2012, transferred to the cost calculation sheet is: 221,320,155 VND.
- Transferring the cost of raw materials of centrifugal pipe product diameter 1500 H30:
Debit account 154: 221,320,155
Credit account 621: 221,320,155
- Then, based on the data in the General Journal, record it in the General Ledger account 621 (Appendix 4).
HUNG VUONG CONCRETE FACTORY
Hung Vuong Construction Company Limited
IV CN Line Co Chien - Long Ho Vinh Long
ACCOUNT LEADERS
Account: 621 – Direct material costs From November 1, 2012 to November 30, 2012
Beginning balance: 0
Document
Client | Interpretation | TK Unit | Number of occurrences | |||
Day | Number | In debt | Have | |||
11/10/2012 | 16 | BT Hung Vuong Factory - CN CT LLC Hung Construction King | Centrifugal Sewer 1500 H30 | 1521 | 109,778,577 | |
November 24, 2012 | 39 | BT Hung Vuong Factory - CN CT LLC Hung Construction King | Centrifugal Sewer 1500 H30 | 1521 | 111,541,578 | |
… | … | … | … | … | … | |
November 30, 2012 | Accounting entry to transfer costs to 154 | 154 | 3,732,737,510 | |||
Total cost of raw materials used for reinforced concrete production incurred in November 2012, transferred to the cost calculation sheet is: 3,732,737,510 VND.
Based on the cost of raw materials of each product produced in the month, the accountant records similarly for the remaining products.
2.2.3. Accounting for direct labor costs:
2.2.3.1. Content:
The cost of labor at Hung Vuong company is the cost of wages of production IT, deductions based on salary (social insurance, health insurance, unemployment insurance, union fee), the company makes deductions according to regulations. Workers' salaries are calculated based on working time, that is, based on actual working days and are determined according to the following formula:
Actual salary = Actual number of working days x Daily wage (VND/day)
+ Overtime pay + lunch
Lunch money = 15,000 VND x actual number of working days in a week
Direct labor costs incurred during the period of manufacturing Hung Vuong Reinforced Concrete products are fully included in the finished product.
2.2.3.2. User account:
- Direct labor costs are collected in Account 622.
2.2.3.3. Documents used:
- Timesheet
- Workers' salary payment slip.
Document circulation process:
- Every day, at the production workshop, the attendance of direct production workers will be assigned to Team Leaders to monitor on the attendance sheet (Appendix 5), under the direction of the Workshop Managers.
At the end of each month, the statistician will bring the timesheet to the company's Administration Department for checking and calculation. Then, based on the timesheet sent by the Administration Department, the payment accountant will create a payment slip (Appendix 6) to pay the workers' salaries. Based on the timesheet and payment slip, the general accountant will compile the data, record it, and then allocate it to each type of pipe.
Then, based on the data in the General Journal, record it in the General Ledger account 622.
2.2.3.4. Accounting for direct labor costs:
Enter data into the software:
Based on the timesheet and payment voucher transferred from the payment accountant, the cost accountant enters data into the software (figure 2.5a, 2.5b)
Figure 2.5a:Data entry screen, payment receipt creation
Figure 2.5b:Data entry screen, payment receipt creation
At the end of the month, the cost accountant will allocate direct labor costs to each type of culvert (just declare the accounts that need to be allocated according to materials) specifically in Figure 2.6a, 2.6b and then enter the data into the software, the software will automatically calculate and update the NCK book, detailed book, General Ledger, etc.
Figure 2.6a:Input screen for cost allocation
Figure 2.6b:Input screen for cost allocation.
- At the end of November 2012, the statistical staff collected four weekly timesheets for November 2012 in the workshops: Vibration Press, Centrifugation, Jumbo, Jacking. Then submitted them to the company.
- Based on the data on the Timesheet (Appendix 5) , the Payment Accountant creates a payment voucher to pay the workers' salaries (Appendix 6).
- Then proceed to synthesize the data. Total salary for November 2012 synthesized from the timesheet to pay production workers is: 542,342,710 VND.
- Accountant prepares General Accounting Voucher: HUNG VUONG CONSTRUCTION COMPANY LIMITED
Zone IV, Co Chien Industrial Line, Long Ho, Vinh Long
GENERAL ACCOUNTING VOUCHER
November 30, 2012 Number of votes: 18
Content
Resources section | Service job | Debt generation | Arising has | |
Production worker salary Production worker salary | 622 334 | Wage Wage | 542,342,710 | 542,342,710 |
Add | 542,342,710 | 542,342,710 | ||
Extract of transactions related to NCTT costs:
Based on PKT 17 ( Appendix 7) dated November 30, 2012 on salaries payable to IT Production, accountants record:
Debit account 622: 191,040,000
Credit account 3341: 191,040,000
Based on PKT 20 ( Appendix 8) dated November 30, 2012 on salaries payable to IT Production, accountants record:
Debit account 622: 331,450,000
Credit account 3341: 331,450,000