Chapter 4
Determine the cost for
accounting objects
1-1
I. PURCHASE
Formula:
Other costs
to make
Cost of = Purchase + Tax - Reductions + assets
asset price
ready to
use
giá tài sản = giá mua + thuế - các khoản giảm trừ + chi phí khác
1-2
I. PURCHASE
Explanation:
1. Non-refundable tax
- Include:
+ Import tax nhập khẩu
+ Special consumption tax tiêu thụ đặc biệt ( ko bao gồm thuế GTGT )
+ Value-added tax (direct method) phương pháp trực tiếp
- Exclude:
+ Value-added tax (deduction method) phương pháp khấu trừ
INVOICE: price , VAT , total1
1-3
I. PURCHASE
Explanation:
2. Reduction
- Include:
+ Trade discount
+ Purchase discount
+ Purchase return
- Exclude:
+ Payment discount
1-4
I. PURCHASE
Explanation:
3. Other costs to make assets ready to use
- Include:
+ Transportation cost
+ Installment costs
+ Assembly cost
+ ….
1-5
Example 1
Purchase a car:
+ Purchase price = 500 million VND
+ Import tax = 10%
+ Special consumption tax = 50%
+ VAT (deduction method) = 10%
Requirement: Calculate cost of the car
1-6
Example 2
The company purchased a set equipment worth 200 million
VND, paid by cash at bank. The transportation cost for this
machinery was 5 million VND, paid in cash.
Requirement:
a. Calculate cost of the machinery
b. Journalize the transaction
1-7
Example 3
The company purchased a tangible fixed asset for 800 million
VND, with half paid by bank transfer and half not yet paid to
the seller. The transportation cost for this asset was 15 million
VND, paid by bank transfer. The installation cost was 20
million VND, paid in cash. Requirement:
a. Calculate the cost of the equipment?
b. Journalize the transaction
1-8
Exercise 4
The company purchased equipment worth 1,530 million VND, which has
not yet been paid to the seller. The transportation cost for this asset was
22 million VND, which has not yet been paid. The installation cost was 18
million VND, paid by cash at bank. Due to some defective items, the
company received a discount of 30 million VND from the seller.
Requirement:
a. Calculate the original cost of the asset
b. Journalize the transaction
1-9
Exercise 5
The company purchased some goods worth 2,106 million VND, which has
not yet been paid to the seller. The transportation cost for this asset was
16 million VND, which has not yet been paid. Due to the large quantity of
the purchase, the company received a discount of 20 million VND from the
seller, which was deducted from the amount owed to the seller. Due to
some defective items, the company received a discount of 50 million VND
from the seller which was deducted from the amount owed to the seller
Requirement:
a. Calculate the original cost of the asset?
b. Journalize transactions
1-10
Exercise 6
The company purchased equipment worth 616,000,000 VND
(including 10% VAT under the deduction method), paid half by
cash at bank and half in cash in hand. The transportation cost
for these goods to the company was 1,980,000 VND
(excluding 10% VAT under the deduction method), paid by
cash at bank.
Requirement:
a. Calculate the original cost of the asset?
b. Journalize transactions 1-11
II. SALES
1. Definition of inventory
- Inventories – assets that are:
+ held for sale in the ordinary course of business;
+ in the process of production for such sale; or
+ in the form of materials or supplies to be consumed in the
production process or in the rendering of services.
1-12
II. SALES
2. METHOD OF ADMINSTRATION
Perpetual Periodic
- Opening: Know - Opening: Biết
- Purchase: Know - Purchase: Know
- Issue: Know - Issue: Do not Know
- Closing: Know
Closing = Opening + Issue = Opening + Purchase
Purchase - Issue - Closing
1-13
II. SALES
- Method of issuing inventory:
+ FIFO
+ Weighted average
. Cummulative weighted average
. Weighted average
+ Specific identification
1-14
II. SALES
Examples:
+ Opening inventory: 500 kg x 10,000 VND/kg
+ Date: 3rd June: Purchase: 900 kg x 12,000 VND/kg
+ Date: 5th June: Purchase: 1,200 kg x 13,000 VND/kg
+ Date: 10th June: Issue: 1,500 kg
+ Date: 15th June: Purchase 3,000 kg x 15,000 VND/kg
+ Date: 20th June: Issue: 2,500 kg
Require:
Using FIFO, calculate:
a.1 Cost of goods sold
a.2 Closing inventory (units)
a.3 Closing inventory (value)
1-15
II. SALES
Examples:
+ Opening inventory: 500 kg x 10,000 VND/kg
+ Date: 3rd June: Purchase: 900 kg x 12,000 VND/kg
+ Date: 5th June: Purchase: 1,200 kg x 13,000 VND/kg
+ Date: 10th June: Issue: 1,500 kg
+ Date: 15th June: Purchase 3,000 kg x 15,000 VND/kg
+ Date: 20th June: Issue: 2,500 kg
Require:
b. Using weighted average:
c.1 Cost of goods sold
c.2 Closing inventory (units)
c.3 Closing inventory (value)
c. Using a cumulative weighted average, calculate:
d.1 Cost of goods sold
d.2 Closing inventory (units)
d.3 Closing inventory (value)
1-16
