CHAPTER 6

I. Multiple- choice questions:

6.1 Which accounts are used to aggregate production costs?
a. Accounts : 621, 622, 627
b. Accounts : 632,641, 642
c. Accounts: 154, 632
d. Accounts : 621, 622, 627, 154
6.2 Which accounts are used to transfer production costs and calculate cost of
finished goods in enterprises applying perpetual inventory system ?
a. Accounts : 621, 622, 627
b. Accounts : 632,641, 642
c. Account : 154
d. Accounts : 621, 622, 627, 154
6.3 Which information is used to prepare Income statement?
a. The total figures arising during the reporting period for accounts from 1 to 4
b. The total figures arising during the reporting period for accounts from 5 to 9
c. The total debit or credit balance of accounts from 1 to 4
d. All answers are wrong.
6.4 Company A sells its finished goods to Company B. The total cost of these
selling products will be recorded by the company A as:
a. The cost of goods that imported into the warehouse
b. Costs of goods sold
c. Revenues from sale
d. The cost of products that imported into the warehouse
6.5 Company A sells its finished goods to Company B. The total cost of the
products will be recorded by the company B as:
a. The cost of goods that imported into the warehouse
b. Costs of goods sold
c. Revenues from sale
d. The cost of products that imported into the warehouse
6.6 Company A sells its finished goods to Company B. If the company A agrees to
give a trade discount to the company B, the company A will record into accounts:
a. Account 156
b. Account 632
c. Account 511
d. Account 521
6.7 Company A sells its finished goods to Company B. The cost of goods
exporting warehouse will be recorded by the company A
a. The cost of goods that imported into the warehouse
b. Costs of goods sold
c. Revenues from sale
d. The cost of products that imported into the warehouse
6.8 The company X sells 500 units of finished goods to the company Y, cost of
merchandise is 200 per uni, selling price is 260 (VAT-exclusive prices). Then, the
company Y returns 20 unit to the company X. Cost of goods sold is recorded by
the company X (trang 245 TV):
a. 96.000
b. 100.000
c. 115.200
d. 120.000
6.9 Prepare journal entries to transfer net profit of the company during the
reporting period:
a. Dr 911/ Cr 421
b. Dr 421/ Cr 911
c. Dr 911/ Cr 353
d. Dr 353/ Cr 911
6.10 Prepare journal entries to transfer net loss of the company during the reporting
period:
a. Dr 911/ Cr 421
b. Dr 421/ Cr 911
c. Dr 911/ Cr 353
d. Dr 353/ Cr 911
6.11 The balance of account 911-income summary :
a. Debit
b. Credit
c. Debit or credit depends on company’s profit or loss
d. All choices are wrong
6.12 Which journal entry is used to record the revenues:
a. Dr 632/Cr 156.
b. Dr 111,112,131/ Cr 632.
c. Dr 111,112,131/ Cr 511.
d. All choices are wrong.
6.13 Which journal entry is used to record the costs of goods sold of the finished
products:
a. Dr 632/Cr 155
b. Dr 111,112,131/Cr 156
c. Dr 111,112,131/Cr 511
d. Dr 632/Cr 156
6.14 Which journal entry is used to transfer costs of production
a. Dr 911/Cr 621, 622, 627
b. Dr 154/Cr 621, 622, 627, 641,642
c. Dr 154/Cr 621, 622, 627
d. Dr 621, 622, 627/Cr 154
6.15 The total costs of production and business in the reporting period:
621: 100 622: 70 627: 40
641: 50 642: 50 811: 10
The total debit of 154 should be:
a. 300
b. 210
c. 210- The beginning work in progress
d. 210+ The beginning work in progress

II-PROBLEMS: (Unit: ‘000 VND)

6.1 Company A has business transactions in January, year N. The company uses
VAT deduction method.
1. Raw materials are issued from the company’s warehouse to
- Factory : 38.000
- Factory management department: 2.000
2. Tools and supplies are used in the factory: 1.500
3. The salaries payable to employees:
-Employees who make directly products: 100.000
-Production management employees50.000
4. Calculating and recording trade union fee, social insurance, health insurance,
unemployment insurance.
5. Depreciation of fixed assets in factory: 20.000
6. Other expenses incurred in the factory, paid in cash: 11.000 (10% VAT
included)
7. Receiving 100 units of finished products into the warehouse (the beginning work
in progress: 13.000, the ending work in progress: 20.000)
Required:
- Prepare journal entries for January transactions of Company A
- Post journal entries to ledger accounts (using T-accounts)
- Calculating cost of finished goods.
6.2 A Company has economic activities in January, Year N, using VAT deduction
method and perpetual inventory system:
1. Raw materials are issued from the company’s warehouse to
- Directly manufacture products: 38.000
- Factory management department: 2.000
2. Tools and supplies are used in the factory: 1.500
3. The salaries payable to employees:
-Labors who make directly products: 100.000
-Factory staffs: 50.000
4. Calculating and recording trade union fee, social insurance, health insurance,
unemployment insurance.
5. Depreciation of fixed assets in factory: 20.000
6. Other expenses incurred in the factory, paid in cash: 11.000 ( including 10%
VAT)
7. Receiving 100 units of finished products into the warehouse ( the starting work
in progress: 13.000, the ending work in progress: 20.000)
Required:
- Prepare journal entries for January transactions of Company A
- Post journal entries to ledger accounts (using T-accounts)
- Calculating cost of finished goods.
6.3 Ngoc Huong company has business transactions in January, Year N:
 - Debit balance of account 155: 60.000 (50 units)
1. Importing 200 units of finished goods into the warehouse, the total cost: 300.000
2. The business sells 70 units with the selling price : 3.500 ( excluding VAT 10%).
The buyer has received the goods and paid by bank deposit
3. Ngoc Huong company’s selling expenses:
- Salary payable for sales: 800.000
- Depreciation of fixed assets for sales department: 400.000
- Tools and supplies are used in sales department : 50.000
4. Ngoc Huong company’s general and administrative expenses:
- Salary payable for management: 1.200.000
- Depreciation of fixed assets for the general and administrative department:
800.000
- Tools and supplies are used in the sales department : 50.000
- Guest expense : 1.100.000 ( including 10% VAT) paid in cash
5. At the end of accounting period, transfer all related amounts in order to calculate
net income of business.
Others:
- VAT : The tax deduction method
- Inventory system : the perpetual inventory system
- Inventory costing method: FIFO
Required:
- Prepare journal entries for January transactions of Company A
- Post journal entries to ledger accounts (using T-accounts)
- Calculating net income of the business
6.4 Rose produce and trading company (RPTC) has business transactions in
January, Year N:
- Opening balance of account 154: 60.000 ( 50 units)
 - Opening balance of account 155: 80.000 ( 40 units)
1. Issue raw materials to use for departments:
- Production division : 98.000
- Factory management department : 2.000
- Sales department : 5.000
- General and administration department:10.000
2. Salary payable to employees:
- Production division : 48.000
- Factory management department : 50.000
- Sale department : 40.000
- General and administrative department : 60. 000
3. Calculating: Trade union fees, social insurance, health insurance, unemployment
insurance.
4. Issue tools & suplies ( type of 1-time allocation) to use for:
- Factory management department : 20.000
- Sales department : 15.000
- General and administrative department : 5.000
5. Receive electricity bill, water bill ( excluding 10% VAT) that cosumed at: for:
- Factory management department : 20.000
- Sales department : 10.000
- General and administrative department : 5.000
6. Depreciation of fixed assets allocates for:
- Factory management department : 25.000
- Sales department : 14.000
- General and administrative department : 6.000
7. During the period, Factory management department have completed and
received 1.000 finished goods A. The ending work in progress: 23.000
8. Sell 700 units of finished goods A for 550 per unit on credit to Dem Thu
company.
Others:
- VAT : The tax deduction method
- Inventory system : the perpetual inventory system
- Inventory costing method: FIFO
Required:
- Preparing the accounting entries.
- Posting to ledgers ( T-account)
- Calculating the unit price of finished goods
- Calculating the net income
- Preparing the income statement.
6.5 In the first quarter, year N, Sun Group has transactions as follows:
Opening balance of accounts:
- Account 152: 200.000
- Account 153: 50.000
- Account 211: .5.000.000
- Account 112: 150.000
- Work in progress: 10.000
- Finished goods: 10.000 ( 1000 units)
- Owner’s equity: 2.100.000
1. Issue primary raw materials 100.000 and secondary raw materials: 40.000 to
directly manufacture products.
2. Issue secondary raw materials: 6.000 for the factory management department
3.Issue tools and supplies for the factory management department 10.000 ( 1-
time allocation)
4. Salaries payable to employees of
- Production division : 138.000
 - Factory management department : 50.000
- Sales department : 40.000
- General and administrative department : 60.000
5. Calculating: Trade union fees, social insurance, health insurance, unemployment
insurance.
6. Depreciation of fixed assets allocates for:
- Factory management department : 200.000
- Sales department : 50.000
- General and administrative department : 30.000
7. During the period, Factory management department have completed and
received 4.000 finished goods. The ending work in progress: 40.000
8. Sell 2000 units of finished products to the buyer. The selling price: 400/unit
(excluding 10% VAT). The buyer paid by bank transfer.
9. The selling expenses paid by bank transfer: 25.000 ( excluding 10% VAT)
10. The general and administrative expenses paid by bank transfer: 30.000
( excluding 10% VAT)
Others:
- VAT : The tax deduction method
- Inventory system : the perpetual inventory system
- Inventory costing method: weighted average cost
- Income tax rate : 20%
Required:
- Journalizing the accounting entries.
- Posting those transactions to the ledgers ( T-Account)
- Calculating the unit price of finished goods
- Calculating the net income
- Preparing the income statement.
- Preparing the balance sheet.